2020.07.2810:23:00UTC+00Gold Dips As Dollar Gets Respite

Gold hit a record high on Tuesday before giving up all gains amid a burst of profit-taking as the dollar stabilized after six consecutive days of losses.

Gold Spot gold eased 0.2 percent to $1,926.85 per ounce after having hit as high as $1,974.40 earlier in the day. U.S. gold futures were also down 0.2 percent at $1,927.95.

The dollar index is having a reprieve today and equities held steady as investors weighed the possibility of additional fiscal stimulus from the United States against rising coronavirus cases around the world.

U.S. Senate Republicans on Monday proposed a $1 trillion coronavirus aid package that slashes unemployment benefits from the current $600 per week to $200, generating swift backlash from Democrats.

The proposal extends the paycheck protection program, which is scheduled to expire on August 8.

Senate Majority Leader Mitch McConnell urged Democrats to compromise with Republicans on the plan, as unemployment benefits will expire at the end of this week.

Investors also await the outcome of a two-day policy meeting of the Federal Reserve starting later in the day for directional cues.

With no change in policy expected, investors will focus on a press conference by Chairman Jerome Powell for more indications about the policy outlook.