(Bloomberg) -- Gold fluctuated before a Tuesday deadline for U.S. stimulus negotiations that may make or break chances for a preelection aid package.Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi will make one more effort to patch up differences between the White House and Democrats on issues that have prevented agreement since talks began in July. U.S. equities rose, and the dollar fell for the third straight session.“The market will no doubt follow the talks in Washington very closely,” Commerzbank analyst Daniel Briesemann said in a note. “Gold could profit in the event of a deal because the U.S. dollar would presumably be in less demand then and would probably depreciate.”Spot gold rose 0.3% to $1,908.95 an ounce at 10:52 a.m. New York time after falling as much as 0.5%. Silver climbed 1.7%, while platinum and palladium gained.The passing of Tuesday’s deadline may have a short-term impact on gold, but “overall the market looks a bit stale, with the outcome and the impact of the U.S. election being an even bigger headache,” according to Ole Hansen, head of commodity strategy at Saxo Bank A/S.The price of the metal held in a narrow range this month amid the fraught Washington talks with investors waiting on the result of the election to provide direction. A Democrat victory should spur a rally for gold on bets for a larger stimulus for the economy, Phillip Futures Pte. said Tuesday in a note.The U.K. and European Union’s chief negotiators will hold talks for the second time in two days as they try to restart the Brexit discussions that Boris Johnson suspended last week.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Gold futures on Tuesday retreat amid progress toward vaccines and a long-sought fresh round of coronavirus relief for American workers and businesses hobbled by the pandemic.
U.S. gold futures eased 0.3% to $1,906.80. "Investors' focus is on the new aid package for the U.S. economy, whether it will be successfully placed before the election," said Commerzbank analyst Eugen Weinberg. U.S. House of Representatives Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin "continued to narrow their differences" on the stimulas package, Pelosi's spokesman Drew Hammill said.