By Gina Lee
Investing.com – Gold was down on Thursday morning in Asia, with renewed hopes for more U.S. stimulus leading to a retreat from the safe-haven yellow metal.
Gold futures edged down 0.17% at $1,887.65 by 11:36 PM ET (3:36 AM GMT). The dollar inched down on Thursday, giving up its earlier gains, and Asian stocks were mostly up.
U.S. President Donald Trump tweeted that Congress should pass money for airlines, small businesses, and stimulus checks of $1,200 for individuals, after his halt of the talks between Democrats and Republicans over the latest stimulus measures rattled global markets.
However, the chances of even these piecemeal packages being passed before the Nov. 3 presidential election are slim, with White House officials downplaying the possibility and House of Representatives Speaker Nancy Pelosi slamming Trump for halting the talks on a more comprehensive deal.
Investors are also digesting the vice-presidential debate between Mike Pence and Kamala Harris, which took place earlier in the day.
Meanwhile, the minutes from the U.S. Federal Reserve’s September meeting released on Wednesday revealed a split over the application of the central bank’s new strategy for monetary policy. With doubts continuing to grow over the country’s economic path, there were no clear next steps to offset the recession triggered by COVID-19.
The minutes did match expectations of more Fed fiscal spending, with Fed officials Eric Rosengren and Raphael Bostic’s speeches later in the day potentially providing further clues about the Fed’s internal debates and policy.
Across the Atlantic, the U.K. estimated the probability of a Brexit trade deal with the European Union (EU) at 66%, as informal talks between the two sides continue. Prime Minister Boris Johnson has set a deadline of Oct. 15 to try and rush EU negotiators towards an agreement.