Gold Drops as Investors Look to Washington for Stimulus Deal

(C) Bloomberg. Freshly cast gold ingot bars sit on a trolley following manufacture at the JSC Krastsvetmet non-ferrous metals plant in Krasnoyarsk, Russia, on Tuesday, Nov. 5, 2019. Gold headed for the biggest weekly loss in more than two years as progress in U.S-China trade talks hammered demand for havens and sent miners’ shares tumbling. Photographer: Andrey Rudakov/Bloomberg

(Bloomberg) — Gold fell after signs of progress in U.S. stimulus talks aimed at reaching a deal ahead of the looming presidential election.

Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin are narrowing their differences on a stimulus deal, a Pelosi aide said Monday. U.S. equity futures advanced and the dollar steadied as optimism about the package spurred risk appetite.

Gold has held in a narrow range during October amid the fraught Washington talks, a contentious U.S. election season and uncertainty around the global economy’s recovery from the coronavirus pandemic.

“Long-term investors have shifted focus on what the November election outcome means for stimulus later, with a Democrat victory seen boosting gold’s sentiment with a very large stimulus package,” Phillip Futures Pte. wrote in an emailed note.

Spot gold fell 0.3% to $1,899.17 an ounce by 10:32 a.m. in Shanghai. Silver and palladium were little changed, while platinum fell.

(C)2020 Bloomberg L.P.