Gold Retreating as US Dollar Rallies as Bets on a US Stimulus Dissipate

Gold fell on Thursday, and lay below $ 1900, a psychological important level, as the dollar held on to recent gains after US Treasury Secretary Stephen Mnuchin dashed hopes for a new stimulus package before the presidential election.

Spot gold fell 0.2% to $ 1897.47 an ounce, after rising 1.2% on Wednesday, and US gold futures fell 0.3% to $ 1,901.50 an ounce.”

Mnuchin said that his position is “very far” from that of Democratic lawmakers regarding an economic aid package to mitigate the repercussions of the Corona virus, and that reaching an agreement will be difficult before the elections.
The presidential elections on November 3, prompting investors to turn to safety in the dollar.

Gold, which is considered a hedge in the face of inflation and a depressed currency, has risen 25% since the beginning of the year in light of unprecedented levels of global stimulus to cushion the impact of the economic blow from the pandemic.

As for other precious metals, silver fell 0.6% to $ 24.13 an ounce, platinum rose 0.3% to $ 859.51, and palladium rose 0.4% to $ 2,353.52.