Gold prices poised to log first loss in 4 sessions

New York (Oct 13)  Gold futures dropped back below $1,900 an ounce on Tuesday, finding little reason to extend a three-session streak of gains as hope for a U.S. stimulus package faded and strength in the U.S. dollar dulled the appeal of the precious metal.

However, a number of investors remain bullish on the prospects for the metal in the longer term, amid expectations that wider government budget deficits in the U.S. and other countries will support higher prices for gold and other precious commodities.

“Gold should continue to rise as the stimulus stalemate (in Washington) might only last a little while beyond the election,” wrote Edward Moya, senior market analyst at Oanda, in a Tuesday note.

December gold GCZ20, -1.73% GOLD, -0.86%  fell by $37.90, or 1.9%, at $1,891 an ounce, after posting gains in each of the past three trading sessions.

Silver for December delivery SIZ20, -4.44% SI00, -4.44%,  meanwhile, dropped $1.12, or 4.4%, at $24.15 an ounce, following a nearly 0.7% gain in the previous section.

Markets are closely watching the 2020 presidential election race between Democratic challenger and former Vice President Joe Biden and incumbent Donald Trump, with the latter trailing significantly in recent national polls with about three weeks headed into the vote.

Investors anticipate that a fiscal stimulus package to help relieve the economic pressure from the viral outbreak will likely come regardless of the person who sits in the Oval Office but may be more significant if Biden’s win comes along with a broader win for Democrats in Congress—a potential boon for gold.

Experts say that signs of rising cases of COVID-19 in many parts of the world and the reinstitution of some social-distancing measures to limit the spread of the deadly infectious disease could buttress bullion values.

“The Northern Hemisphere is struggling with the fight against COVID and that just means fiscal support is coming,”

MarketWatch