2020.10.2710:35:00UTC+00Gold Prices Ease As Dollar Holds Firm

Gold prices eased on Tuesday and the dollar held firm as investors pondered over the economic impact of a second wave of coronavirus infections and the threat of contested outcome of U.S. presidential election.

Spot gold slid 0.1 percent to $1,900.85 per ounce, while U.S. gold futures were down 0.2 percent at $1,901.95.

Many countries, including the United States, Russia and France are setting daily records for coronavirus infections, forcing the governments to impose new restrictions.

Fear and anxiety are spiking along with the virus in U.S. hot spots as the number of hospitalized patients reached a two-month high.

U.S. infectious disease expert Anthony Fauci called the situation "quite precarious" and said that a Covid-19 vaccine isn't an end-all solution to the pandemic.

Uncertainty over fresh U.S. stimulus also weighed on the precious metal. White House economic adviser Larry Kudlow told reporters on Monday that talks over a coronavirus relief package have slowed down, but they're not ending.

Separately, House Speaker Nancy Pelosi said she hoped progress can be accomplished before the Nov. 3 elections.

Democrat Joe Biden is maintaining a solid lead over President Donald Trump in national polls but the contest is much tighter in battleground states that could decide the outcome.