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

Gold slips from 3-wk high on prospect of limited U.S. stimulus

Published 13/10/2020, 01:27 am
© Reuters.
XAU/USD
-
XAG/USD
-
GC
-
SI
-
PA
-
PL
-

* U.S. government, bond market closed for Columbus Day

* Trump administration calls for stripped-down relief bill

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

By Sumita Layek

Oct 12 (Reuters) - Gold prices fell from a three-week peak on Monday as expectations of an inadequate U.S. coronavirus relief bill dented the appeal of bullion, which is used as a hedge against likely inflation.

Spot gold XAU= fell 0.3% to $1,923.56 per ounce by 1:41 p.m. EDT (1741 GMT), after hitting its highest since Sept. 21 at $1,932.96. U.S. gold futures GCv1 settled up 0.1% at $1,928.90.

The Trump administration on Sunday called on Congress to pass a stripped-down coronavirus relief bill using leftover funds, as negotiations on a broader package ran into resistance. are talking trillions (in stimulus) one day and it's billions the next day and it will (probably) be millions next. It feels like it is getting smaller coming into the election," said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

The possibility of a smaller U.S. coronavirus stimulus bill is weighing on gold, he added.

Gold has gained over 26% so far this year helped by stimulus from governments and global central banks as it considered a hedge against inflation risks and currency weakening.

Investors were also keeping a close eye on the upcoming U.S. election due in a couple of weeks, where Democrat Joe Biden is seen as more likely to win. will be higher if Biden wins because he will spend a lot of money," said Bob Haberkorn, senior market strategist at RJO Futures, adding any unknowns on the election night will also provide support.

Bullion also eased as Wall Street's main indexes were supported by rising tech stocks. .N

The U.S. government and bond market are closed on Monday for Columbus Day.

Among other precious metals, silver XAG= fell 0.2% to $25.07 per ounce, platinum XPT= fell 1.3% to $874.22, while palladium XPD= lost 1.6% to $2,399.86.

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.