Gold Down Over Trump's Hospital Discharge
Gold was down on Tuesday morning in Asia, with a weaker dollar countering the pressure from improving risk sentiment as U.S. President Donald Trump was discharged from hospital and raised hopes for the latest stimulus measures to be passed by Congress.
Gold futures edged down 0.19% at $1,916.40 by 12:27 AM ET (4:27 AM GMT), remaining above the $1,900-mark. The dollar was down, while most Asian stocks were up on Tuesday.
Trump tested positive for COVID-19 during the previous week alongside wife Melania Trump and was discharged from Walter Reed National Military Medical Center on Monday. He will remain under medical surveillance, however, with White House physician Sean Conley warning that the president may “not be out of the woods yet.”
Meanwhile, the U.S.’ latest COVID-19 stimulus measures were among the topics discussed by House of Representatives Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin during their phone call on Tuesday. White House Chief of Staff Mark Meadows was also positive, saying that the potential for an agreement between the Republicans and Democrats on more economic relief measures is still there. Trump is also committed to seeing the measures passed. However, optimism is also tinged with caution as COVID-19 spreads among key policy maker figures.
Investors also await remarks from both Federal Reserve Chairman Jerome Powell and European Central Bank (ECB) chief economist Philip Lane, who will deliver keynote addresses at the NABE conference later today. Minutes from both the Fed and ECB’s respective September meetings will be released on Wednesday.
Chicago Fed President Charles Evans said on Monday predicted inflation to reach 2% by 2023, urging for it to be pushed up to 2.5% to offset the long period of below-target price rises.
Across the Atlantic, data released on Monday showed that the euro zone’s economic recovery faltered in September as the number of COVID-19 cases in the region continues to rise.