Gold Rises as Concerns Over U.S. Stimulus

(Reuters) – Gold prices rose on Wednesday after a steep fall in the previous session, as doubts about a stimulus package proposed by U.S. President Donald Trump to soften the economic impact of the coronavirus epidemic weighed on risk sentiment.

Gold bars stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, August 14, 2019. REUTERS/Michael Dalder
Spot gold XAU= was up 0.4% at $1,656.37 per ounce by 0242 GMT, having fallen nearly 2% on Tuesday on hopes for global stimulus measures. U.S. gold futures GCcv1 slipped 0.2% to $1,656.70.
The White House and Congress negotiated measures on Tuesday to bolster the U.S. economy and Americans’ paychecks against the epidemic’s impact, although there was no immediate sign of a deal.
“Risk sentiment has turned sour … the market is pretty disappointed by Trump’s delay of the stimulus package, which he had promised on Tuesday,” CMC Markets analyst Margaret Yang Yan said.