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Gold Futures Settle Higher As Dollar Extends Slide

Gold prices moved higher on Tuesday, extending gains from previous session, as the dollar continued to exhibit weakness.

Weakness in stock markets amid rising worries about a surge in coronavirus cases across the globe, Brexit uncertainty, and caution ahead of the presidential debate between President Donald Trump and Democratic candidate Joe Biden rendered global stock markets weak.

Trump and Biden are set to meet tonight in Cleveland for their first of three debates that could shake up the race for the White House.

The markets were also reacting to updates about negotiations over a new coronavirus rescue plan, and news on the Brexit front.

The dollar index dropped to 93.82 in late morning trades, and despite recovering to 94.05 a little past noon, slipped to 93.87 subsequently, netting a loss of about 0.4%.

Gold futures for December ended up $20.90 or about 1.1% at $1,903.20 an ounce, the highest settlement since last Tuesday.

Silver futures for December closed higher by $0.841 at $24.445 an ounce, while Copper futures for December settled flat at $2.9900 per pound.

According to reports, Democrats unveiled their latest relief package Monday night ahead of renewed negotiations with Treasury Secretary Steven Mnuchin.

“Democrats are making good on our promise to compromise with this updated bill, which is necessary to address the immediate health and economic crisis facing America’s working families right now,” Speaker of the House Nancy Pelosi said in a statement Monday.

On the Brexit front, the European Union and Britain have indicated that a post-Brexit deal was still some way off as negotiations recommenced over implementing their Withdrawal Agreement.

On the Covid-19 front, the global death toll from the pandemic surged past 1 million on Monday night, with U.N. Secretary General Ant?nio Guterres calling it a “mind-numbing figure”.

He said that it was crucial that the international community learn from the mistakes made in the first 10 months of the pandemic.

Separately, Anthony S. Fauci, the United States’ leading infectious-disease expert, called Florida’s full reopening of bars and restaurants “very concerning,” and warned it will spark more coronavirus outbreaks.

The material has been provided by InstaForex Company – www.instaforex.com