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PRECIOUS-Gold falls on uptick in equities; Trump-Biden debate eyed

Published 28/09/2020, 07:47 pm
© Reuters.
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* 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/ (Recasts, adds comment, updates prices)

By Nakul Iyer

Sept 28 (Reuters) - Gold fell on Monday as positive economic data from China provided a fillip to risk-sentiment, denting the appeal of the safe-haven metal ahead of the first presidential election debate between U.S. President Donald Trump and Democratic rival Joe Biden.

Spot gold XAU= fell 0.3% to $1,853.85 per ounce by 928 GMT. U.S. gold futures GCv1 were down 0.5% at $1,856.40.

"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 slightly softer dollar that lowered the cost of holding gold for other currency holders. 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 globally 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 I think the market will continue to be left with a great deal of uncertainty," potentially benefiting gold, said Saxo Bank analyst Ole Hansen.

Investors are keeping an eye on developments over a new fiscal coronavirus relief package after U.S. House Speaker Nancy Pelosi said on Sunday a deal could be reached with the White House and that talks were continuing. silver XAG= fell 0.5% to $22.74 per ounce, platinum XPT= gained 0.7% to $853.22 and palladium XPD= was little changed at $2,215.46.

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