US Markets
GLD

PRECIOUS-Gold inches lower on caution over U.S. stimulus bill

Credit: REUTERS/BAZ RATNER

Gold prices inched lower early on Tuesday as caution set in ahead of the deadline to reach an agreement on a new U.S. coronavirus stimulus, diminishing the metal's appeal of being a hedge against inflation.

Oct 20 (Reuters) - Gold prices inched lower early on Tuesday as caution set in ahead of the deadline to reach an agreement on a new U.S. coronavirus stimulus, diminishing the metal's appeal of being a hedge against inflation.

FUNDAMENTALS

* Spot gold fell 0.1% to $1,903.16 per ounce by 0055 GMT.

* U.S. gold futures were down 0.3% at $1,906.50.

* U.S. House of Representatives Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin "continued to narrow their differences" about a fresh aid package, Pelosi's spokesman, Drew Hammill, wrote on Twitter.

* Pelosi hopes that by the end of Tuesday there will be "clarity" on whether a coronavirus stimulus bill can be passed before the Nov. 3 elections, Hammill wrote.

* The U.S. economy is rebounding strongly after taking a big hit because of the pandemic, but it may be another year before the economy returns to pre-crisis levels and take even longer for the labor market to recoup lost ground, Federal Reserve Vice Chair Richard Clarida said on Monday.

* Britain sees no basis to resume trade talks with the European Union unless there is a fundamental change in approach from Brussels, chief negotiator David Frost said, dashing earlier optimism that negotiations could resume.

* The European Central Bank will maintain an accommodative policy in response to the ongoing coronavirus crisis, ECB President Christine Lagarde said.

* The dollar index was steady against rivals, while Asian stocks came under pressure. [USD/] [MKTS/GLOB]

* SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, said its holdings rose 0.02% to 1,272.85 tonnes on Monday from 1,272.56 tonnes on Friday.

* Silver fell 0.3% to $24.43 per ounce, platinum and palladium were 0.1% higher at $856.85 and $2,345.37, respectively.

DATA/EVENTS (GMT)

1230 US Housing Starts Number Sept (Reporting by Eileen Soreng in Bengaluru; editing by Uttaresh.V) ((eileen.soreng@thomsonreuters.com; Within U.S. +1 646 223 8780, Outside U.S. +91 80 6749 6131; Reuters Messaging: eileen.soreng.thomsonreuters.com@reuters.net)) Keywords: GLOBAL PRECIOUS/

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

GLD

Latest US Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More