“Gold prices pared losses and recaptured the 1,900 mark after House Speaker Nancy Pelosi stated that lawmakers are “‘just about there’ on a stimulus deal.” –Paul Ebeling
Gold settled lower Thursday, but comments from House Speaker Nancy Pelosi (D-CA) raised hopes for a deal on another round of China Act of War Virus aid, prompting prices to hold above Key support at 1,900oz.
President Trump said he is ready sign a big virus stimulus bill that helps individuals and businesses, but does not bail out cities that have been managed badly by Democrats for decades.
Analysts attributed overall weakness in prices for the precious Yellow metal to strength in USDs and a continued drive higher in Treasury yields, which can dull the luster of gold and other commodities, that are non-yielding assets.
Gold for December delivery GOLD, -1.75% fell 24.90, or 1.3%, to settle at 1,904.60oz on COMEX after taping an intraday low of 1,894.20.
” Yes, in the short term the above is true, but in the longer term it will cause the price of gold to again rise because any stimulus would add to Federal deficits and thus have a weakening effect on the value of the US Dollar. However, this would also be good for cheaper US exports in the short term and help rebuild employment which is just the medicine America needs. I still believe that in 2021 gold will break-out and start on the road to $3,000 per once.” says gold investor and expert Bruce WD Barren.
Have a healthy day, Keep the Faith!