30.09.202011:11:00UTC+00Gold Falls As Dollar Strengthens After Presidential Debate

Gold fell on Wednesday and was on track for its biggest monthly decline in nearly 4 years as the dollar clearly regained its status as preferred safe haven in the face of substantial economic and event risks.

Spot gold fell 0.6 percent to $1,892.40 per ounce, declining over 4 percent so far in September and remaining on track for its worst monthly performance since November 2016. U.S. gold futures were down 0.6 percent at $1,891.95 per ounce.

The U.S. dollar benefited from caution that crept into financial markets as the first debate between U.S. President Donald Trump and Democratic challenger Joe Biden deteriorated into bitter taunts and near chaos Tuesday, raising concerns over heightened political risk ahead of November's presidential election.

Rising number of coronavirus cases in the U.S. and Europe as well as the Congressional stalemate on a stimulus package are among the other factors driving the increased demand for the greenback.

U.S. House Speaker Nancy Pelosi and White House Chief of Staff Mark Meadows said Tuesday that they're hopeful they can reach a new economic stimulus agreement, a day after House Democrats unveiled a new bill and stalled talks resumed.

After her conversation with U.S. Treasury Secretary Mnuchin, Pelosi said she's hopeful about clinching a longshot deal.