Gold down on diminishing expectation for stimulus bill

By Xu JingUnreguser
  • World
  • Thursday, 05 Nov 2020

CHICAGO, Nov. 4 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange fell on Wednesday as investors lowered expectations for a stimulus bill.

The most active gold contract for December delivery fell 14.2 U.S. dollars, or 0.74 percent, to close at 1,896.2 dollars per ounce.

Investors' expectation for stimulus measures is diminishing as the ongoing U.S. election may produce a divided U.S. government.

Gold was under additional pressure as three major stock market indexes in the United States rose.

Positive economic figures also dampen gold. The U.S. international trade deficit fell 4.7 percent to 63.9 billion dollars in September from 67 billion dollars in August; the IHS Markit final services PMI reading rose to 56.9 in October, the quickest pace of expansion since April 2015 and up from 54.6 in September.

Other economic figures, nonetheless, prevented gold's fall to certain extent. The Institute for Supply Management's services index fell to 56.6 in October from 57.8 in September; Automated Data Processing Inc. reported that 365,000 jobs were created in private sector in October, far below the growth of 753,000 in September.

Investors are also waiting for a statement by Federal Reserve Chairman Jerome Powell due on Thursday, for direction of the economy after the U.S. election.

Silver for December delivery fell 44.1 cents, or 1.81 percent, to close at 23.893 dollars per ounce. Platinum for January delivery fell 4.9 dollars, or 0.56 percent, to close at 870.1 dollars per ounce.

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