Gold prices fell today from the psychologically important $ 1900 level, to record the metal the lowest price in more than a week, under pressure from the strength of the dollar and the lack of progress in talks on a new US stimulus package.

Gold fell in the spot market by 0.2 percent to 1897.35 dollars an ounce, by 07:11 GMT, and before that, gold recorded 1890.19 dollars an ounce, its lowest level since October 15.

While the precious metal futures contract fell 0.4 percent to $ 1898.20 an ounce.

"It seems that there is no momentum to find additional buyers (for gold), largely due to the fact that trading is taking place in light of the impending US elections and stimulus speculation," said Kyle Roda, an analyst at consultancy IG Markets.

The dollar index, which measures the exchange rate of the US currency against a basket of currencies, rose 0.2 percent.

On Sunday, US House of Representatives Speaker Nancy Pelosi said that the administration of US President Donald Trump is reviewing the latest plan to provide more aid to those affected by Covid-19 and that it expects a response today.

But with the presidential election approaching, analysts say that the victory of Democratic candidate Joe Biden will contribute to the rise of gold thanks to expectations for a huge stimulus package, especially in light of the increase in cases of Covid-19 disease in the United States.

Gold, widely seen as a hedge against inflation and currency devaluation, has risen 25 percent this year as central banks and governments announce unprecedented stimulus programs to ease the economic fallout of the pandemic.

Source: "Reuters"

By:Nadeemy Haded

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