Gold futures aimed to rebound on Wednesday after bullion sank below a psychologically significant level at $1,900 and snapped a three-session win Tuesday.
A slightly weaker U.S. dollar early Wednesday was helping to provide some lift for bullion, a day after the precious metal suffered a sharp pullback.
Gold enthusiasts point to uncertainties around the 2020 presidential race between President Donald Trump and former Vice President Joe Biden and a lack of clarity around the prospects for economic growth amid the viral outbreak as factors that have buttressed gold prices despite steep periodic drawdowns.
“The approaching U.S. presidential election and doubts of any new U.S. stimulus package for Americans before the end of the year are also unknowns that have paused the stock indexes at mid-week,” wrote analysts at Kitco.com.
December gold was up $8.90, or 0.5%, at $1,902.80 an ounce, a day after tumbling 1.8% on Tuesday.
Silver for December delivery, meanwhile, gained 19 cents, or 0.8%, at $24.32 an ounce, following a 4.5% skid for gold’s sister metal in the previous session.