Monday, October 19, 2020

GOLD Showcase Rise - Is This A Good Indication?

 The yellow metal trade started positively earlier this week with trading above the $ 1,900 price amid rising concerns over the impact of the Covid-19 surge on the global economy.

At the beginning of the European session, the precious metal traded up 0.5% to $ 1,909 per ounce, while gold futures were positive at $ 1,913 per ounce (3.00pm Malaysian time).

Europe is now at risk of doubling the risk of a recession following the second wave of Covid-19 that hit the continent by recording a tremendous increase of 44% in just one week, according to a World Health Organization (WHO) report.

Meanwhile, in the latest development on US fiscal aid talks, House of Representatives Speaker Nancy Pelosi once again expressed her confidence that an agreement would be reached before the presidential election takes place next month.

Nevertheless, Pelosi set a deadline until Tuesday for Congress to reach a consensus.

Meanwhile, President Donald Trump in his latest statement, stated that he wants a bigger stimulus plan than proposed by Pelosi. However, his will certainly not get the approval of the US Senate which firmly wants a smaller aid package.