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PRECIOUS-Gold edges up as weaker dollar offsets news on Trump's progress

Published 05/10/2020, 09:08 pm
Updated 05/10/2020, 10:42 pm
© Reuters.
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* Dollar index down 0.2%

* Trump could be discharged as soon as Monday

* Euro zone's economic recovery faltered in Sept.

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

By Sumita Layek

Oct 5 (Reuters) - Gold inched up on Monday as the dollar weakened, although gains were limited as news that U.S. President Donald Trump, who is receiving treatment for COVID-19, could be released from hospital boosted risk sentiment.

Spot gold XAU= was up 0.1% at $1,899.86 per ounce at 1130 GMT. U.S. gold futures GCv1 were down 0.2% at $1,903.70.

"There are two opposing forces at work in the gold market, on the one hand we've the perception that the U.S. president is doing better and that he may be released from the hospital today and that's driving positive risk sentiment," said UBS analyst Giovanni Staunovo.

And, on the other hand, "we see the dollar has started to weaken again and this is offsetting the losses from the risk-on sentiment," he added.

Global stocks rose on Monday after news that Trump could be discharged from hospital as soon as Monday, although outside experts warned that his case may be severe. MKTS/GLOB dollar .DXY was down 0.2% against rivals, making gold cheaper for holders of other currencies. USD/

Meanwhile, reinforcing the economic damage from the coronavirus, data showed the euro zone's economic recovery faltered in September. are now focused on new U.S. coronavirus relief aid aimed at cushioning the economic blow from the pandemic. is need for new stimulus measures to rally (gold) prices. Without this mojo, there are signs of fatigue creeping into precious metals," Avtar Sandu, a senior commodities manager at Phillip Futures, said in a note.

Gold has risen about 25% this year, supported by massive stimulus by governments and central banks worldwide as the metal is seen as a hedge against inflation and currency debasement.

Among other metals, silver XAG= gained 0.8% to $23.89 per ounce, platinum XPT= eased 0.3% to $879.79 and palladium XPD= climbed 0.8% to $2,325.85.

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