SMM10: the precious metals rally paused today as investors questioned whether the United States could reach an agreement on a new fiscal stimulus package before the election, with the dollar index rebounding slightly after hitting a seven-week low. At the close of trading during the day, the main Shanghai gold market was at 404.86 yuan / g, down to 0.05%, while the Shanghai Bank was mainly at 5278 yuan / kg, up 0.4%.
Pelosi, speaker of the US House of Representatives, said yesterday that she believed negotiations with the White House could lead to a new economic relief deal for the epidemic, despite opposition from Senate Republicans, but she said the deal could not be reached until after the election. Earlier, after the latest round of talks between Pelosi and Nuchin, people familiar with the matter said that progress had been made in the negotiations, with the goal of "reaching some form of agreement in the next 48 hours or so". It is reported that Nuchin proposed an overall stimulus package of $1.88 trillion, while Pelosi insisted on $2.2 trillion.
However, the latest news is that Pelosi, speaker of the US House of Representatives, believes that it is possible to reach an agreement with Treasury Secretary Nuchin on a stimulus package to deal with the impact of novel coronavirus's epidemic, but the agreement is unlikely to be passed by both houses of Congress before November 3.
While short-term gold prices may not fall after the general election lead passes the stimulus package, factors such as low interest rates, outbreaks, geopolitical safe-haven demand and a rebound in inflation expectations remain positive for bulls in the long term.
In terms of positions, the World Gold Council said that China's total gold ETF positions and asset management reached an all-time high in September, at 69.5t and US $4.2 billion, respectively. In early September, two Shanghai gold ETF listed by Jianxin Fund and Bank of China Fund, expanding the choice of Chinese gold ETF investors to 11. In addition, despite the weak gold price rally in September, the strategic allocation of gold by Chinese investors continued to increase to cope with possible economic and geopolitical uncertainty in the future.
The latest data show that gold ETF's current position: 1269.35 tons, down 0.58 tons from the previous day.
