Gold’s one-month risk reversals, a gauge of calls to puts, is again falling, indicating a resumed demand for put options or bearish bets on the yellow metal.

On the other hand, Hopes for a new corona virus relief package were dented as U.S. House Speaker Nancy Pelosi rejected a $1.8 trillion proposal from the White House, saying it “falls significantly short of what this pandemic and deep recession demand.” Global finance leaders on Tuesday said the world economy had escaped a corona virus-triggered collapse so far, but warned that failure to conquer the pandemic, maintain stimulus and tackle mounting debt among poor nations could crush a fragile recovery.

U.S. consumer prices increased for a fourth straight month in September, with the cost of cars and trucks rising by the most since 1969, but inflation is slowing amid excess capacity in the economy as it gradually recovers from the COVID-19 recession.

In the latest polls, such as the TRS/Ipsos Poll, 51% of Michigan likely voters backed Biden, while 43% supported Trump. Then, according to the same poll, 48% of North Carolina likely voters backed Biden and 47% supported Trump.

”Democrats have also injected momentum into existing supporters, with voters for Biden now more likely to turn out than they were last month, up from 75% in September to 82% this month,” the official website says, adding:

”Subsequently, Biden’s lead over Trump, including don’t know voters, has increased to 17 points. That is, 57% of likely voters intended to vote for Biden, and 40% intended to vote for Trump. ”Meanwhile, Reuters quoted Desjardins Capital Markets saying that Election Day will be critical for markets depending on the best-case scenario of smooth election proceeds.

The lowest market impact will be coming from Joe Biden’s victory but Democrats failing to overturn the Senate, or where Donald Trump wins but Democrats still hold on to the House of Representatives.

XAU/USD 4 Hour Chart:

Support: 1877.8 (S1), 1862.6 (S2), 1838.9 (S3).

Resistance: 1916.8 (R1), 1940.5 (R2), 1955.7 (R3).

Amidst a flow of risk-negative headlines keeps global investors pessimistic, we expect a bearish trend for XAU/USD.