[Golden Scout] Gold Rally Enters Third Day On Stimulus Chase As Dollar Wilts.

Illustration photo for Gold from investing.com

Kuala Lumpur 4 a.m. (GMT +8) - Gold rallied for a third straight day on Wednesday as the dollar tumbled and bulls in the yellow metal chased the prospects of a Covid-19 economic stimulus before the U.S. election in two weeks.

Spot gold, which reflects real-time trades in bullion, rose $16.89, or 0.9%, to $1,922.86.

The Dollar Index, which pits the greenback against six major currencies, tumbled for a third straight day on Wednesday, losing 0.5% to hit a seven-week low of 92.46 on speculation that the White House and Congress might reach agreement on a new coronavirus relief deal. Gold is an outright hedge for any losses in the dollar.

Hopes for a stimulus deal were kept alive on Wednesday by White House Chief of Staff Mark Meadows, who said he was “very hopeful that progress is being made” in the negotiations. Meadows added that the Trump administration will continue to stay engaged in talks with House of Representatives Speaker Nancy Pelosi over the coming days.

Another stimulus is also critical for the economy, which may be forced into a slower and weaker recovery from the Covid-19 without more aid, Federal Reserve Governor Lael Brainard said Wednesday.

The U.S. economy was stuck in a "slight to modest" pace of recovery in September, with the job market struggling, as businesses tried to operate amid continued impact from the pandemic, the central bank’s Beige Book report of business conditions showed.

For any further information please refer to https://www.investing.com/news...