By Adam Claringbull
Investing.com – Gold was down on Tuesday morning in Asia as the greenback gained strength. A rapid rise in U.S. tech stocks also drew investors’ interest away from the precious metal.
Gold futures were down 0.65% at $1,916.35 by 12:41 AM ET (4:41 AM GMT)
Gold fell in morning trade in Asia, following a flat previous session. The dollar strengthening gave the precious metal its downwards trend, with major rises in U.S. tech stocks, particularly Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN), also providing headwinds.
Positive drivers for the precious metal were found in some investors’ revamped hopes for a U.S. COVID-19 stimulus package, with the White House claiming that the U.S. Senate will go along with President Donald Trump’s new proposed legislation. Investors are also factoring in a likely win by Democrat Joe Biden in November’s U.S. presidential elections, which they see as leading to a much larger stimulus package than currently proposed.
This news, combined with the continued rise of global COVID-19 cases, especially in the U.S. Midwest, helped to reduce the downward pressure of the stronger dollar, with prices beginning to flatten out in later trading.
Last week the World Gold Council said global gold-backed exchange traded products saw their holding surpass 1,000 tonnes for the year in September, a new record high.