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PRECIOUS-Gold falls to one-month low as dollar extends rally

Published 30/10/2020, 01:47 am
© Reuters.
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* No deal in sight on coronavirus relief -White House adviser

* Dollar hits one-month peak

* Silver slips to one-month low

* Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa (Updates prices)

By Brijesh Patel

Oct 29 (Reuters) - Gold prices dropped to one-month lows on Thursday, hurt by a stronger dollar and lack of clarity on a U.S. stimulus agreement, while concerns over a spike in COVID-19 cases and uncertainty ahead of U.S. elections limited losses.

Spot gold XAU= was down 0.5% at $1,867.40 per ounce by 1:39 p.m. EDT (1739 GMT), having earlier slipped to its lowest since Sept. 28 at $1,858.92.

U.S. gold futures GCcv1 settled down 0.6% to $1,868.

"The downturn we are seeing in gold prices is because there is a short-term concern about timing of the stimulus getting approved," said Jeffrey Sica, founder of Circle Squared Alternative Investments, adding "a strengthening U.S. dollar is impacting gold."

President Donald Trump's chief economic adviser said on Thursday that any deal on coronavirus relief legislation would have to wait for now. gold's appeal, the dollar index .DXY rose 0.7% to a one-month high, making gold more expensive for holders of other currencies. USD/

"Gold is now at levels where people could accumulate considering the chaos around the election, concerns about economic recovery and the coronavirus situation. The trend for gold is still bullish," Sica said.

Gold, often used as a safe store of value during times of political and financial uncertainty, has risen 24% this year amid unprecedented global levels of stimulus during the pandemic.

Rapidly rising COVID-19 infection rates in Europe forced France and Germany to order their countries back into lockdown. data showed the U.S. economy grew at an unrivalled pace in the third quarter and weekly unemployment claims fell more than expected in the latest week. of the Nov. 3 election, Democratic challenger Joe Biden leads Trump nationally, but the competition is tighter in swing states. silver XAG= dipped 0.5% to $23.30 per ounce after earlier slipping to a near one-month low.

Platinum XPT= fell 2.2% to $848.58 and palladium XPD= slipped 1.8% to $2,197.90.

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