Gold is under pressure below 1900! New information on the situation across the Taiwan Straits! About the US election: Donald Trump and Joe Biden will take on each other.

In Asian session on Thursday, the DOLLAR index was little changed at around 93.40. Spot gold fell modestly to trade at $1,895 an ounce, although prices rebounded from intraday lows after earlier neared $1,890 an ounce. In the news, the USS Barry sailed through the Taiwan Strait on Wednesday, the latest response from the People’s Liberation Army’s Eastern Theater Command on Thursday. Moreover, despite the cancellation of the second presidential debate, Mr Trump and Joe Biden, the Democratic nominee, were scheduled to take part in a town hall event at the same time on Thursday night local time, and although the contest was a distant one, the two sides were expected to continue to spark furiously.

Gold continued to come under pressure as the IMPASSE over the U.S. economic stimulus package dimmed hopes of a novel Coronavirus rescue deal before the Nov. 3 election. On Wednesday, U.S. Treasury Secretary Steven Mnuchin said significant differences remain in the stimulus talks and that ‘we will continue to make progress on certain issues, but it will be difficult to reach an agreement before the elections.’

On Tuesday, House Speaker Nancy Pelosi said the latest package proposed by President Trump after canceling negotiations falls far short of what the American people need. On Saturday, a new $1.8 trillion economic stimulus package proposed by the Trump administration drew criticism from Democrats and Republicans in Congress,

“It’s becoming increasingly clear that there won’t be any stimulus before the election,” said Erik Nelson, currency strategist at Wells Fargo in New York.

“The stalling of the next stimulus package in Washington continues to weigh on assets like gold, which are dependent on a weaker dollar for the next wave of support,” said David Meger, head of metals trading at High Ridge Futures in New York.

Gold is back below $1901.80 an ounce, according to Economies.com, leaving open the possibility that the bearish trend will continue for some time to come. With the gold outlook continuing to be bearish, the next major target is $1,860.90 / oz.

One caveat, Economies.com added, is that maintaining gold prices below $1901.80 an ounce is important to continue the expected downward trend.

Edward Moya, senior market analyst at OANDA, said the latest impasse in negotiations over the fiscal stimulus deal “takes away some of the short-term bullish factors we had expected for gold”.

Phillip Streible, chief market strategist for Blue Line Futures in Chicago, said the prospect of a SMALLER U.S. Novel Coronavirus stimulus is weighing on gold prices.

Eureka Mining report editor Richard Baker warned that gold volatility would remain high. “Gold will definitely experience volatility as the Congressional stimulus package seeks to strike a balance between the domestic novel Coronavirus and the reality of the presidential election,” Baker said.

Gold is seen as a hedge against inflation and currency depreciation. The price of gold has risen 25 per cent this year as the world has taken unprecedented stimulus measures to cushion the economic blow from the outbreak.

In a telephone interview with Kitco News, George Milling-Stanley, chief gold strategist at State Street Global Advisors, said the uncertainty and market turmoil that drove gold to a record high in August have not gone away.

Mr Milling-stanley said investors needed to focus on the broader issues that dominate financial markets rather than the short-term volatility caused by Washington’s “on-again, off-again” stimulus negotiations.

Rising government debt, low interest rates and rising inflation expectations will continue to drive gold higher, he said. He added that gold could easily return to $2,000 an ounce by the end of 2021.

“No matter who wins the election, Democrat or Republican, we’re going to take stimulus measures,” says Bart Melek, head of commodity strategy at TD Securities. The fact is that America needs a stimulus package, although it seems doubtful that we will get one in any meaningful way before the election.”

The latest news on the situation across the Taiwan Straits

The USS Barry sailed through the Taiwan Strait on Wednesday. The People’s Liberation Army’s eastern theater command said in its latest response Thursday that it was tracking and monitoring the U.S. ship.

Senior Colonel Zhang Chunhui, spokesman for the PLA Eastern Theater Command, said that the US destroyer “Barry” sailed across the Taiwan Strait on October 14, and the PLA Eastern Theater Command organized naval and air forces to track and monitor the SHIP throughout the whole process.

Zhang chunhui pointed out that recently, the US has repeatedly sent wrong signals to the “Taiwan independence” forces on Taiwan-related issues, seriously undermining peace and stability in the Taiwan Straits.

“We are urging the US side to stop its words and deeds in the Taiwan Strait,” Zhang said. The troops in the theater will always be on high alert, resolutely safeguarding China’s sovereignty and territorial integrity, and firmly upholding peace and stability across the Taiwan Straits.”

Taiwan’s defense ministry said Wednesday that a U.S. destroyer sailed north after passing through the Taiwan Strait from south to North.

Taiwan’s defense ministry said that during the course of the SHIP’s passage north through the Taiwan Strait, the Taiwan military took control of the whole course, and relevant developments in the surrounding sea and air space were all normal, Taiwan-based United News Network reported.

According to the report, the last time a US warship passed through the Taiwan Strait was on August 31, when Czech Senate President Vitzi led a delegation to Taiwan, according to public information from Taiwan’s defense ministry. A U.S. destroyer sailed south after passing through the Taiwan Strait from north to South, the Taiwanese defense ministry said in a press release.

According to public records by Taiwan’s defense ministry, Oct. 14 was the 10th time this year that a U.S. warship has sailed through the Taiwan Strait.

Mr Trump and Mr Biden will face off against each other

Despite the cancellation of the second presidential debate, US President Donald Trump will take part in a town hall event on the evening of October 15 local time. Meanwhile, Democratic presidential candidate Joe Biden is scheduled to take part in another town-hall event at the same time that will pit the two against each other.

Biden will take part in a 90-minute town hall meeting hosted by ABC’s Chief news anchor George Stephanopoulos. The event was scheduled last week.

But NBC broke the news on Wednesday by announcing that Mr Trump would take questions from voters at an hour-long campaign event in Miami, hosted by Today’s Savannah Guthrie. Both events begin Thursday at 8 p.m. Est.

NBC confirmed On Wednesday that it will broadcast Donald Trump’s town hall event in Miami at 8 p.m. Edt. The condition, the report said, was that the Trump campaign provide objective evidence that Trump would not pose a security risk to the health of other attendees, including NBC staff, voters and Guthrie himself.

The non-partisan commission on Presidential Debates, which had been scheduled for the second presidential debate on Thursday night, chose to host a virtual one out of caution, but announced on Friday that it would not “waste time” debating Mr Biden remotely, after Mr Trump said he would not. On the same day, ABC News announced that it would hold a town hall meeting with Mr. Biden on its live “20/20” special edition in Philadelphia on Oct. 15, at which voters would be able to ask the Democratic candidate questions in lieu of a scheduled debate less than a month before election Day.

In response, Samantha Zager, a spokeswoman for the Trump campaign, said, “If Biden is able to debate in person at city Hall, nothing will stop Trump from having the debate in Miami as originally planned.” She also noted that his doctor had allowed him to participate in live events.

On October 2, Trump confirmed that he and Melania were hospitalized following infection with a Novel Coronavirus, and continued medical care after being discharged from the White House on Friday. Trump is no longer considered a risk of transmission after completing treatment, White House doctor Conley has announced.

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