Gold down amid rising hopes for U.S. stimulus

Gold prices fell earlier on Monday in Asian trading with traders cautiously retreating from safe-haven assets after rising hopes that U.S. Congress might pass the latest stimulus measures ahead of the November 3 presidential election.

House of Representatives speaker Nancy Pelosi has set a Tuesday deadline for Congress to pass the measures, optimistic that the deadline would be met. President Donald Trump has also renewed an offer to increase the measures’ price tag.

Gold futures lost 0.11%, trading at $1,904.30 per ounce at 12:29 AM ET (4:29 AM GMT).

Meanwhile, holdings in SPDR Gold Trust, the largest gold-backed exchange-traded fund in the world, fell by 0.27% to 1,272.56 tons on Friday, following a U.S. Commodity Futures Trading Commission report which showed that speculators had decreased their bullish positions in COMEX gold and silver contracts in the week to October 13.