FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
99,321,020Confirmed
2,130,293Deaths
71,367,357Recovered
Fetching Location Data…
Advertisement
Advertisement
James Hyerczyk
Comex Gold
Shiny gold bullions ingot stack on america US dollar banknote money as financial asset, investment and wealth concept

Gold futures are trading lower on Monday, but clawing back most of its earlier losses. The catalysts behind the initial weakness was a stronger U.S. Dollar and a stalemate in the negotiations over the new U.S. coronavirus aid package. Technical factors and the remote chance of a stimulus deal could be providing some support.

At 07:54 GMT, December Comex gold is trading $1903.10, down $2.10 or -0.11%.

Advertisement
Know where Gold is headed? Take advantage now with 

75% of retail CFD investors lose money

Traders could also be monitoring the U.S. presidential election polls. Democratic candidate Joe Biden currently leads in the polls. His agenda is expected to be supportive for gold because he is expected to flood the economy with fiscal aid, which would weaken the U.S. Dollar and drive up inflation.

Stimulus Update

U.S. House Speaker Nancy Pelosi said on Sunday that she expected a White House response on Monday regarding the latest stimulus spending plan – but there have been few tangible signs that a long-stalled deal is actually nearer.

Advertisement

Rising COVID-19 Cases Should Be Supportive

A jump in global coronavirus cases, new restrictions and potential shutdowns should be supportive for gold prices over the longer-term because it will mean that central banks will have to continue to be more accommodative, but most of all, it drives up the urgency to continue to provide fiscal stimulus.

Most investors believe the U.S. will eventually reach a new fiscal stimulus deal, and the idea of more stimulus from the European Central Bank is starting to gain traction.

On Friday, Johns Hopkins University reported more than 83,000 new infections in the United States on both Friday and Saturday after outbreaks in Sun Belt states. This number beat the previous record of roughly 77,300 cases set in July.

The hits just kept on coming over the weekend when White House chief of staff Mark Meadows said Sunday that the U.S. will not get control of the pandemic amid the surge in new cases.

Meanwhile, the resurgence of the coronavirus in Europe has continued apace in recent days, with France reporting a record daily rise in infections on Sunday, Italy ordering bars to close early and shutting public gyms and Spain issuing a nationwide curfew to stem a worsening outbreak.

Daily Forecast

The short-term direction is too tough to call because of the possible swings in the U.S. Dollar. Longer-term, the market continues to be well-supported by central bank accommodations.

Basically, this means, we can live with short-term volatility until the stimulus deal is worked out and the presidential election results are settled because we are confident that central bank monetary stimulus will encourage longer-term investors to buy the dips. Any fiscal stimulus should spike prices higher, but we just have to wait for that.

For a look at all of today’s economic events, check out our economic calendar.
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US