Commodities

Gold Stumbles Down After Stimulus Deadlock

Gold stumbles down after stimulus deadlock

The Thursday morning yet again witnessed prices of gold edging lower early in the Asian markets. It was pulled down by strengthening of the greenback and the US stimulus package deadlock.

The Gold futures lost ground by 0.30 per cent and plummeted to $1,901.55 at 3:58 AM GMT.

Investors preferred the safe-haven currency over the commodity as there is no likelihood of COVID-19 stimulus package coming to the fore prior to November due to the presidential elections in the United States.

With new strict measures coming into force in Europe following the spike in coronavirus cases, the factor is pushing the US dollar to roar further in the forex market.

Interestingly, Metals Focus, consultancy on Wednesday had acknowledged that 3368 tonnes of gold would be produced by the world’s gold mines this year. It would be the lowest in five years and down by 4.6 per cent compared to the previous year. However, the high bullion prices would help push the target by 8.8 per cent (3,664 tonnes) in 2021.

Notably, after Nancy Pelosi (House of Representatives Speaker) and Steven Mnuchin (Treasury Secretary) failed to reach an agreement over the package details, the talks on Stimulus have been postponed sine die.

Leave a Reply

Your email address will not be published. Required fields are marked *