Oct 20 (Reuters) - Gold prices inched lower early on Tuesday
as caution set in ahead of the deadline to reach an agreement on
a new U.S. coronavirus stimulus, diminishing the metal's appeal
of being a hedge against inflation.
FUNDAMENTALS
* Spot gold XAU= fell 0.1% to $1,903.16 per ounce by 0055
GMT.
* U.S. gold futures GCv1 were down 0.3% at $1,906.50.
* U.S. House of Representatives Speaker Nancy Pelosi and
Treasury Secretary Steve Mnuchin "continued to narrow their
differences" about a fresh aid package, Pelosi's spokesman, Drew
Hammill, wrote on Twitter. * Pelosi hopes that by the end of Tuesday there will be
"clarity" on whether a coronavirus stimulus bill can be passed
before the Nov. 3 elections, Hammill wrote.
* The U.S. economy is rebounding strongly after taking a big
hit because of the pandemic, but it may be another year before
the economy returns to pre-crisis levels and take even longer
for the labor market to recoup lost ground, Federal Reserve Vice
Chair Richard Clarida said on Monday. * Britain sees no basis to resume trade talks with the
European Union unless there is a fundamental change in approach
from Brussels, chief negotiator David Frost said, dashing
earlier optimism that negotiations could resume. * The European Central Bank will maintain an accommodative
policy in response to the ongoing coronavirus crisis, ECB
President Christine Lagarde said. * The dollar index .DXY was steady against rivals, while
Asian stocks came under pressure. USD/ MKTS/GLOB
* SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings rose 0.02% to 1,272.85
tonnes on Monday from 1,272.56 tonnes on Friday. * Silver XAG= fell 0.3% to $24.43 per ounce, platinum
XPT= and palladium XPD= were 0.1% higher at $856.85 and
$2,345.37, respectively.
DATA/EVENTS (GMT)
1230 US Housing Starts Number Sept