Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

PRECIOUS-Gold drops as equities rebound; Trump-Biden debate eyed

Published 28/09/2020, 09:30 pm
© Reuters.
XAU/USD
-
XAG/USD
-
GC
-
SI
-
PA
-
PL
-

* Stronger dollar could push gold to $1,820-$1,800/oz - analyst

* China's industrial profits grow for fourth straight month

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

By Nakul Iyer

Sept 28 (Reuters) - Gold eased on Monday as positive economic data from China boosted risk-sentiment, dimming the safe-haven metal's allure, ahead of the first presidential election debate between U.S. President Donald Trump and Democratic rival Joe Biden.

Spot gold XAU= fell 0.1% to $1,858.55 per ounce by 1110 GMT. U.S. gold futures GCv1 were down 0.3% to $1,861.10.

"As China's ongoing economic recovery boosts risk sentiment and uplifts investor confidence, appetite towards gold may drop in the short term despite the negative list of factors at play," said FXTM analyst Lukman Otunuga.

Data over the weekend showed profits at China's industrial firms grew for the fourth straight month in August, giving a boost to equity markets. MKTS/GLOB however, failed to take advantage of a softer dollar, that retreated from a two-month high hit on Friday. USD/

An appreciating dollar has the potential to drag gold prices towards $1,820 - $1,800, though gold remains supported by political uncertainty and rising coronavirus cases in the medium to longer term, FXTM's Otunuga said.

Markets are now awaiting the first presidential election debate between Trump and Biden on Tuesday. we do have a draw and no one particularly putting in a strong performance, then the market will continue to be left with a great deal of uncertainty," potentially benefiting gold, said Saxo Bank analyst Ole Hansen.

Investors are also keeping an eye on developments over a new coronavirus relief package after U.S. House Speaker Nancy Pelosi said on Sunday a deal could be reached with the White House and talks were continuing. silver XAG= rose 0.4% to $22.94 per ounce, platinum XPT= gained 1.8% to $862.34 and palladium XPD= was up 0.3% at $2,222.12.

"Once gold stabilizes and we get a sense that we've seen the worst in terms of a correction (in silver), then silver is likely to come flying back," Saxo Bank's Hansen added.

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.