The prices of gold barely moved on Wednesday as the impact of the stronger U.S. dollar was outweighed by uncertainties surrounding the U.S. presidential election and the resurgence of global coronavirus cases. The yellow metal was also supported by the waning hopes for the passage of the new U.S. fiscal stimulus measures before the U.S. elections.

The greenback rose by 0.2% against a basket of rival currencies, which made the bullion more expensive for investors using other currencies. But some investors and traders remain bullish on gold because of the global economic slowdown and coronavirus worries.

Spot gold is currently trading at $ 1,906.39 per ounce as of 0728 GMT.

House Speaker Nancy Pelosi is still hoping an agreement can be reached on the new coronavirus economic relief deal before the November 3 election. But President Donald Trump announced yesterday that a deal could be reached only after the election because the White House failed to bridge differences with congressional Democrats, as well as fellow Republicans. He blamed Pelosi for the lack of an agreement and promised to give the best stimulus package after the election.

U.S. Global Investors’ head trader Michael Matousek said that there would be limited trading activity before the election and gold could be stuck in a tight price range. AxiCorp’s chief global market strategist Stephen Innes added that investors need a motivation to purchase more gold, and that will come from a fiscal or monetary policy signal. He is expecting more stimulus and intervention from central banks because the economic impact of the second wave of COVID-19 could be significant.

There was a record number of new COVID-19 cases in the U.S., France, Russia and several other countries. Some European governments have already imposed new restrictions to control the spread of the virus.

In physical trading, China’s gold imports in September reached the highest level in six months. The demand for the bullion in the world’s largest gold consumer recovered as the economic activity picked up.

On the technical aspect of trading, Reuters’ technical analyst Wang Tao predicted that spot gold prices might test the support price level at $1,887 per ounce since the upward trend generated by this support would end around a resistance price at $1,912.

In a related development, the holdings in the largest gold-backed exchange-traded fund in the world, SPDR Gold Trust, dropped by 0.23% yesterday to 1,266.72 tons.