(Bloomberg) -- Gold was steady 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. Investors are weighing the chances of a resolution to stimulus talks before the Nov. 3 election. 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.Global coronavirus cases exceeded 40 million, with the pandemic showing no signs of slowing. Moderna CEO Stéphane Bancel said the U.S. government could authorize emergency use of its Covid-19 vaccine in December if it gets positive interim results in November from a large clinical trial, Wall Street Journal reported.In the short term, “with no new definite drivers with enough mojo that would be able to propel gold to new highs beyond recent record levels, prices can expected to consolidate or fall,” Phillip Futures said.Spot gold little changed at $1,902.82 an ounce by 7:37 a.m. in London. Silver rose 0.5% and palladium +0.4, while platinum steady.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.
"Investors' focus is on the new aid package for the U.S. economy, whether it will be successfully placed before the elections," Commerzbank analyst Eugen Weinberg said. U.S. House of Representatives Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin "continued to narrow their differences" about the package, Pelosi's spokesman Drew Hammill said. Gold, which has risen nearly 26% so far this year, tends to benefit from widespread stimulus measures from central banks because the metal is viewed as a hedge against inflation and currency debasement.
Gold prices on Monday end higher to start the week, with talk of a last-ditch effort to strike a deal by U.S. lawmakers on a fresh round of fiscal relief before the 2020 presidential elections helping to drive buying appetite, experts said.