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Gold Up Over Weak Dollar, Looks to U.S. Presidential Debate

Published 09/29/2020, 12:32 AM
Updated 09/29/2020, 12:34 AM
© Reuters.

By Gina Lee

Investing.com – Gold was up on Tuesday morning in Asia, boosted by a weaker dollar but avoiding big moves ahead of the U.S. presidential debate and the latest developments in U.S. stimulus measures.

Gold futures were up 0.24% at $1,886.90 by 12:31 AM ET (4:31 AM GMT). The greenback inched down on Tuesday after recording its biggest daily percentage drop in a month during the previous session.

Holdings in SPDR Gold Trust (P:GLD), the largest gold-backed exchange-traded fund globally, rose 0.16% to 1,268.89 tonnes on Monday.

President Donald Trump and Democrat candidate Joe Biden will take part in the debate, ahead of the Nov. 3 presidential elections.

The focus is also back on whether the Senate will pass the latest relief bill proposed by Democrats before the election. U.S. House of Representatives Speaker Nancy Pelosi said on Monday that the reduced, $2.2 trillion price tag was a compromise, but did not indicate when a vote would take place.

Across the Atlantic, the European Union (EU) and the U.K. began a week-long round of talks on Monday to iron out a Brexit deal. But both parties warned that there was still a long road towards reaching an agreement.

On the COVID-19 front, the number of new cases in the U.S. rose for the second week in a row in 27 out of the 50 states, adding to concerns over the health of the U.S. economy. Globally, deaths from the virus topped 1 million, with over 33.2 million cases as of Sep. 29, according to Johns Hopkins University data.

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Latest comments

"1,268.89 tonnes" Gina Lee, would you be able to provide any verifiable evidence to support your gold holding claim here? How reliable are GLD's holding reports? GLD does not give retail investors the right to redeem for any of its mystery physical gold holdings. This fact alone ensures the GLD shares to be nothing more than paper at the end of the day. GLD also has a glaring audit loophole in their prospectus that states they have no right to audit subcustodial gold holdings. To this day, I have not heard of a single good reason for the existence of this backdoor to the fund.  I remember there was a highly publicized visit by CNBC's Bob Pisani to GLD's gold vault. This visit was organized by GLD's management to prove the existence of GLD's gold but the gold bar held up by Mr. Pisani had the serial number ZJ6752 which did not appear on the most recent bar list at that time. It was later discovered that this "GLD" bar was actually owned by ETF Securities.
Even on the subject of GLD's insurance, they are not at all straightforward about it. Their representatives will not confirm nor deny the existence of GLD's insurance. I recommend anyone curious about this to confirm via calling GLD's publicly listed number for general inquiries at 866 320 4053 and ask about this clause from the GLD prospectus: "The Custodian maintains insurance with regard to its business on such terms and conditions as it considers appropriate which does not cover the full amount of gold held in custody." Exactly how much of the fund is insured? They will not give you a straight answer and might even throw in some bizarre excuse which I've experienced. Why hide this information from investors? The people behind GLD certainly do not seem like the most honest types.
What are the Democrats doing? And why aren't the Republicans jumping at ANY offer?Offering even 1 cent of stimulus before the election only helps Trump
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