On gold's radar this week: U.S. stimulus talks, Brexit, rise in COVID-19 cases - Commerzbank
Gold is carefully watching the U.S. stimulus talks, Brexit headlines, and rising coronavirus cases, according to Commerzbank. "Gold is beginning the new week of trading slightly more firmly at a good $1,900 per troy ounce. It is finding support from the steep rises in new coronavirus cases, which are fuelling concerns among market participants," writes Commerzbank analyst Daniel Briesemann. On the U.S. stimulus front, the Democratic Majority Leader in the U.S. House of Representatives Nancy Pelosi's comments that "a compromise would need to be reached in the dispute over a new aid package for the U.S. economy by tomorrow evening if it is to be approved before the presidential election" is being interpreted as positive news by the markets, which is helping equities and gold. Brexit headlines are also garnering attention as U.K. Prime Minister Boris Johnson said over the weekend that Britain should prepare for a "hard" Brexit if the E.U. doesn't approve the free trade agreement. "The next weeks will show whether the two sides are able to meet one another halfway and avoid more substantial damage. Gold should profit from this uncertainty, in our opinion," Briesemann says.