Gold continues losses as Dollar strengthens amid fading U.S. stimulus hopes
Gold prices fell earlier on Thursday in Asia as the Dollar continued to gain strength amid fading hopes of a U.S. COVID-19 stimulus package before the November 3 presidential elections.
Gold futures slipped by 0.30%, trading at $1,901.55 per ounce at 11:58 PM ET (3:58 AM GMT).
The Dollar saw gains in morning trade, buoyed by investors flocking to the safe-haven currency after signs that a decision for U.S. COVID-19 relief measures might not take place before the U.S. elections. A surge in new COVID-19 cases in Europe also helped the Greenback, with Germany, the U.K., and France all beginning to put in place further restrictions such as closing schools and introducing regional lockdowns.
Global mining operations for gold is expected to produce 3,368 tonnes for 2020, its lowest in 5 years and down by 4.6% compared to production in 2019. However, high bullion prices could help increase output by 8.8% to a record 3,664 tonnes next year, according to consultancy Metals Focus on Wednesday.