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PRECIOUS-Gold edges up ahead of key U.S presidential debate

Published 29/09/2020, 07:57 pm
© Reuters.
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* Trend positive as long as gold is above $1,850-$1,860/oz- analyst

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

By Nakul Iyer

Sept 29 (Reuters) - Gold inched up to touch its highest in almost a week on Tuesday, supported by a pull-back in the dollar, as investors waited for the first U.S. presidential debate and further developments on a new U.S. coronavirus relief bill.

Having risen as high as $1,886.86, spot gold XAU= was up 0.1% at $1,883.55 per ounce at 0930 GMT, while U.S. gold futures GCv1 rose 0.4% to $1,889.30.

The dollar was down 0.2% against a basket of other major currencies .DXY ahead of the 90-minute televised debate between President Donald Trump and democratic rival, Joe Biden at 2100 ET (0100 GMT). USD/

"We could see a little bit of strength (in gold) in the medium term but sentiment does appear to have shifted a little bit towards the downside," Michael Hewson, chief market analyst at CMC Markets UK.

Investors appear to be leaning towards U.S. tech stocks rather than gold and with no further action from U.S. Federal Reserve until November, there is no reason to buy it, he added.

The metal has fallen more than 4% this month and is on track for its worst monthly decline since November 2016.

Investors are also keeping close tabs on the prospect for a fiscal coronavirus package with Democratic lawmakers in U.S. House of Representatives unveiling a $2.2 trillion relief bill, although no date was given for a vote on the proposal. long as the (gold) price remains above $1,850-$1,860, the main trend remains positive, while a decline below $1,850 would denote some further weakness, said ActivTrades chief analyst Carlo Alberto De Casa in a note.

The 10% decline in gold prices from August's record high still looks like a significant correction or pause for consolidation, rather than a proper reversal, he added.

Elsewhere, silver XAG= rose 0.1% to $23.74 per ounce, platinum XPT= dipped 0.3% to $876.50, while palladium XPD= edged 0.2% higher to $2,260.55.

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