fundamental News - XAUUSD

Gold prices rose on Monday but renewed pressure seems likely for the yellow metal as a new coronavirus stimulus deal between the White House and Congress remained elusive.

Those familiar with negotiations on the stimulus said there was still distance between the Republican administration of President Donald Trump and the Democrat Congress led by House Speaker Nancy Pelosi.

Pelosi said Sunday that she was optimistic legislation could be pushed through before the November 3 U.S. election. White House Chief of Staff Mark Meadows also expressed hope on Monday that a deal was possible, saying the administration has gone as far as offering $1.9 trillion versus the $1.8 trillion package proposed earlier.

Yet, a standoff between the two sides lingered, and that weighed on gold prices in late trading.

U.S. gold for December delivery was at $1,905.35, down $1.05, or 0.1%. It settled Monday’s official trading session up $5.30, or 0.3%, at $1,911.70/oz.

Spot gold, which reflects real-time trades in bullion, up $2.02, or 0.1%, at $1,902.19 by 3:51 PM ET (19:51 GMT).

Congress, led by Pelosi and the Democrats, approved a Coronavirus Aid, Relief and Economic Security (CARES) stimulus in March, dispensing roughly $3 trillion as paycheck protection for workers, loans and grants for businesses and other personal aid for qualifying citizens and residents.

Democrats have been locked in a stalemate since with Republicans, who control the US Senate, on a successive package to the CARES, arguing over the size of the next relief, as thousands of Americans, particularly those in the airlines sector, risked losing their jobs without further aid.

President Donald Trump trails Democrat challenger Joe Biden in most polls ahead of the November 3 election. A preliminary agreement over the stimulus could be a positive talking point for the president at his campaign rallies.

Source: fxstreet