NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

PRECIOUS-Gold falls as dollar rebounds, investors eye U.S. stimulus

Published 13/10/2020, 03:20 pm
© Reuters.
XAU/USD
-
XAG/USD
-
DX
-
GC
-
SI
-
PA
-
PL
-
DXY
-

* "Blue wave" likely to lift gold prices - analyst

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

By Eileen Soreng

Oct 13 (Reuters) - Gold edged lower on Tuesday as the dollar rebounded, although the metal is likely to be supported going forward due to an eventual U.S. stimulus package that will boost its appeal as a hedge against the resultant inflation.

Spot gold XAU= inched 0.1% lower to $1,919.76 per ounce by 0813 GMT.

U.S. gold futures GCv1 were down 0.3% at $1,922.70 per ounce.

"In the absence of further dollar downside, gold bulls are feeling a little jittery at the moment," said Howie Lee, an economist at OCBC Bank.

"Over the near or longer term, there is a boost for gold prices if it is (stimulus) passed. But because we're stuck in a deadlock now and it increasingly looks like there'll be none before the elections, gold is struggling a bit here."

The dollar index .DXY was up 0.2% against rivals. USD/

A White House spokeswoman said on Monday Senate Republicans will go along with what President Donald Trump wants in a coronavirus relief legislation. on Sunday called on Congress to pass a stripped-down bill. also kept close tabs on the upcoming U.S. elections with polls showing Democrat rival Joe Biden leading the race. so-called 'blue wave' would likely pave the way for a larger fiscal support package, which in turn could exert more upward pressure on bullion," said FXTM market analyst Han Tan.

"A protracted delay to the U.S. elections outcome could also spur risk aversion in the interim, which could buffer the supportive environment for gold," Tan said, adding, however, that the risk of a higher dollar and yields remained a headwind.

Meanwhile, adding to the uncertainty over the economic recovery was a recent spike in COVID-19 cases across major economies, including the U.S. and the UK, with worldwide infections crossing 37.74 million. XAG= fell 0.8% to $24.90 per ounce, platinum XPT= dipped 0.3% to $870.75, while palladium XPD= rose 0.6% to $2,416.51.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.