Gold Down, Even Amid Search for Safety Amid COVID-19 Uncertainty

imageCommodities4 hours ago (Oct 16, 2020 12:38AM ET)

(C) Reuters.

By Gina Lee – Gold was down on Friday, even as the number of COVID-19 cases surged in Europe and the U.S., and the ongoing stalemate in the U.S. Congress over a COVID-19 package continues to fuel a flight to safety.

Gold futures inched down 0.03% at $1,908.30 by 12:36 AM ET (4:36 AM GMT), giving up earlier gains

A weakening dollar, down on Friday, capped losses, however.

Some European countries, such as the U.K. and France, are implementing fresh restrictions to curb the spread of the virus from Friday. The U.S. Midwest also saw surging numbers of COVID-19 cases as the temperature drops.

There are over 7.9 million cases in the U.S., and over 38.8 million cases globally, as of Oct. 16, according to Johns Hopkins University data.

Meanwhile, President Donald Trump on Thursday offered to raise the price tag on the $1.8 trillion package that he proposed earlier in the week. Trump’s offer was rejected by Senate Majority Leader Mitch McConnell, who feared that Republicans would not agree to the price increase. Treasury Secretary of the Treasury Steven Mnuchin also informed House of Representatives Speaker Nancy Pelosi the same day that Trump will personally lobby to get reluctant Senate Republicans behind any deal reached.

However, investors continue to cast doubt on any deal materializing before the Nov. 3 presidential elections, which has seen the yellow metal trade in a narrow range for the month of October.

Gold Down, Even Amid Search for Safety Amid COVID-19 Uncertainty

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