Gold inches lower on caution ahead of Trump-Biden debate

Gold edged lower in early Asian trade on Wednesday with cautious investors awaiting key takeaways from the first U.S. presidential debate, while optimism over hopes of a U.S. coronavirus aid deal limited losses.

FUNDAMENTALS
Spot gold was down 0.1% at $1,896.03 per ounce by 0034 GMT, having earlier hit a one-week high of $1,899.12. U.S. gold futures were down 0.1% at $1,889.70.


The dollar index was down 0.1% against rivals.

U.S. President Donald Trump and Democratic candidate Joe Biden will begin shortly their first presidential debate.

U.S. House Speaker Nancy Pelosi said on Tuesday she hoped to have a coronavirus aid deal with the White House this week, after speaking with Treasury Secretary Steve Mnuchin.

The U.S. recovery from the coronavirus-linked recession has been more robust than expected, New York Federal Reserve President John Williams said on Tuesday, though he added it could be about three years before the economy regains its full strength.

Britain's House of Commons approved a legislation on Tuesday that gives ministers the power to break its divorce deal with the European Union, despite the threat of legal action from Brussels and unrest within the governing Conservative Party.

The global coronavirus death toll surpassed a million on Tuesday, according to a Reuters tally.

Silver rose 0.2% to $24.22 per ounce, platinum fell 0.1%, to $883.25 and palladium gained 0.5% to $2,319.59.