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PRECIOUS-Gold slips on strong dollar, U.S. stimulus doubts

Published 26/10/2020, 03:10 pm
© Reuters.
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* Break below $1,887/oz could drive further dips -technicals

* Chinese car sales to buoy platinum, palladium -analysts

* Interactive graphic tracking global spread of coronavirus: https://graphics.reuters.com/world-coronavirus-tracker-and-maps/ (Updates prices)

By Eileen Soreng

Oct 26 (Reuters) - Gold fell below the key psychological level of $1,900 on Monday to its lowest in more than a week, pressured by a firmer dollar and stalled progress in talks for a new U.S. coronavirus aid package.

Spot gold XAU= fell 0.2% to $1,897.71 per ounce by 0908 GMT, after hitting $1,890.19, its lowest since Oct. 15.

U.S. gold futures GCv1 fell 0.3% to $1,900.50.

"There seems to be a lack of impetus to find extra buyers (for gold)... A lot of it is because we're trading in the looming shadow of the U.S. elections and stimulus speculation," said IG Markets analyst Kyle Rodda.

The dollar .DXY rose 0.3% against a basket of other currencies. USD/

U.S. House Speaker Nancy Pelosi on Sunday said the Trump administration was reviewing the latest plan for more COVID-19 relief and that she expected a response on Monday. with the presidential elections fast approaching, analysts said a victory for Democrat rival Joe Biden could help gold rally on a potential large stimulus package, especially amid COVID-19 cases surging in the United States. registered a record increase in infections over the weekend and Spain announced a state of emergency as cases surged through Europe. viewed as a hedge against inflation and currency debasement, bullion has gained 25.1% this year as central banks and governments unveiled unprecedented stimulus to cushion the economic fallout from the pandemic.

A break below support at $1,887 per ounce could push gold lower to $1,872, according to Reuters technical analyst Wang Tao. auto-catalyst metals palladium XPD= and platinum dropped 1.5% to $2,356.16 and 1.4% to $888.59 respectively.

"Although supply shocks for the pair have eased in recent weeks, Chinese car sales continue to eclipse expectations, which paints a bullish picture into the year end and should keep prices buoyant," MKS PAMP said in a note.

Silver XAG= fell 1.9% to $24.12 per ounce.

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