Starting the week with a bullish momentum, gold’s price has slowly retreated since mid-week and ended to close last week's trading session in a narrow range of 0.21% to the level of $ 1,902.09 per troy ounce. The price of gold is still being driven by absorbing global sentiment that is still rolling, such as talks related to US stimulus, Brexit, and the headlines of the COVID-19 pandemic from world corners, such as Europe.
Although previously there were differences of opinion, the gap between Pelosi and Mnuchin began to narrow and it is hoped that there will be clarity regarding how the continuation of the stimulus will unfold before the presidential election on November 3. In addition, the White House and Senate of the Democratic Party also seem to be getting closer to reaching the agreement and later confirmed by Trump's statement that he is ready to accept the agreement of greater value despite Republican opposition.
Also contributing to market’s optimism leading to pressure on gold prices, hopes for progress on Brexit negotiations also came following news that the two sides (EU and UK) will hold intensive talks, although both admit a significant gap will remain the most difficult area, such as the fisheries sector which has not yet found a point of agreement.
Behind the optimism that once dominated the market, the increase in C-19 cases is still overshadowed by the increase in cases on Thursday, which again scored the most, which was more than 478,000 cases in 1 day. Meanwhile Europe with its new measures, the toughest since the end of May's national lockdown, will start today and will last until November 24. Furthermore, Spain has agreed to a state of emergency and declared a national curfew from 11 p.m. to 6 a.m.
US National Election Guiding the Gold Markets
The Presidential Election will be held on November 3rd, with the contenders listed are Donald Trump versus Joe Biden, both of them had already done several debate to gain supporters from the public. Besides the debate and the elections, stimulus issue also become the main point, as several officials are now trying to ratified the stimulus package to help against the C-19 effect on economy. Although how much of the stimulus will be has not decided, several officials were optimist the package will be approved before the election.
The C-19 Second Wave Hits Hard
European Countries are now struggling to limit the C-19 infections, as several countries in Europe were reporting a record increase daily infection and announce the state of emergency. The increase last week, were recorded as a new daily biggest increase as it approach 500.000 new cases per day. For information, there are now 12 vaccine are on 3rd phase trials, while there are 6 vaccines are available for limited use. Until vaccines are able to distributed widely, the C-19 headlines may keep its intact to drive the gold prices.