Golden Scout - Gold in $40 Meltdown as U.S. Stimulus Talks Hit Wall

Gold’s scintillating comeback from $1,700 lows hit a wall on Wednesday as Senate Republicans stalled again aid for the coronavirus pandemic that has killed nearly 290,000 Americans and left millions of others waiting in food lines.

Gold for February delivery on New York’s Comex settled down $36.40, or nearly 2%, at $1,838.50 an ounce. That was just over $40 below Tuesday’s session peak of $1,879.75 — which marked a three week high.

The spot price for gold, which reflects real-time trades in bullion and which algorithms and hedge funds use to decide on the next immediate direction, was typically lower than the benchmark futures contract.

At 2:34 p.m. (ET), about an hour after the official settlement on COMEX, spot gold was at $1,834.90, down $40, or 2.1%, from the previous session’s last trade. A drop below $1,835 on the spot could be bearish for gold overall, creating pressure a downside under $1,820, said chartists.

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