👀 Copy Legendary Investors' Portfolios in One ClickCopy For Free

PRECIOUS-Gold falls on firm dollar, vaccine delay limits losses

Published 09/09/2020, 09:06 pm
Updated 09/09/2020, 09:12 pm
XAU/USD
-
XAG/USD
-
GC
-
SI
-
PA
-
PL
-
DXY
-

* Dollar hits near one-month high

* Tech rout roils equities

* Focus on central banks decisions

* Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Recasts, adds comments; updates prices)

By Diptendu Lahiri

Sept 9 (Reuters) - Gold eased on Wednesday on a firm dollar and as some investors sold bullion to offset losses from a recent selloff in equities, but worries about a delay in the development of a coronavirus vaccine limited the metal's declines.

Spot gold XAU= fell 0.5% to $1,922.21 per ounce by 1056 GMT. U.S. gold futures GCcv1 fell 0.7% to $1,928.90.

"It is a combination of investors quitting to fund margin calls and a stronger dollar. However, we don't see a drastic fall in gold because the fundamentals are still rock solid," said Afshin Nabavi, senior vice president at precious metals trader MKS SA.

While European shares bounced back a bit, sentiment remains fragile after a sharp selloff in Wall Street and as AstraZeneca halted trials of its COVID-19 vaccine. .EU dollar .DXY was at a near one-month high against rivals, making gold expensive for holders of other currencies. USD/

Investors now await the outcome of the European Central Bank's policy meeting due on Thursday and the Bank of Canada's policy meeting on Wednesday.

"European countries do need some kind of economic help from the central bank, which would make the euro a little weaker compared to the dollar, but given the lingering uncertainties, that won't cause much damage to gold's shine," said independent analyst Ross Norman.

The COVID-19 pandemic has weighed heavily on economies worldwide, forcing major central banks to provide massive stimulus to counter the negative effects and putting gold on track to register its best year in a decade.

The news of a delay in developing a vaccine for COVID-19 may be indirectly supportive for gold, as it could spell a prolonged economic slowdown and further expectations of fiscal stimulus, said Saxo Bank analyst Ole Hansen.

Elsewhere, platinum XPT= rose 0.2% to $902.94. On Tuesday, the World Platinum Investment Council changed its forecast for the market in 2020 from a surplus to a deficit. XAG= dipped 0.7% to $26.51, while palladium XPD= was down 0.5% to $2,263.82.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ gold

https://tmsnrt.rs/3bDiOj7

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

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.