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PRECIOUS-Gold gains as Biden victory dents dollar, boosts stimulus hopes

Published 09/11/2020, 02:55 pm
Updated 09/11/2020, 07:30 pm
© Reuters.
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* Spot gold may rise to $1,975/oz - technicals

* Dollar hovers near a more than two-month low

* Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa (Adds comments, updates prices)

By Eileen Soreng

Nov 9 (Reuters) - Gold rose on Monday as Joe Biden's win in the U.S. presidential race weighed on the dollar and ignited hopes of more monetary stimulus measures to revive an economy battered by COVID-19.

Spot gold XAU= rose 0.4% to $1,960.11 per ounce by 0817 GMT. Earlier in the session, it hit its highest since Sept. 16 at $1,965.33.

U.S. gold futures GCv1 gained 0.4% to $1,958.80.

"Gold prices are moving up anticipating another stimulus (package) by the U.S. and once that comes, you could see another leg of this rally," said Kunal Shah, head of research at Nirmal Bang Commodities in Mumbai, India.

"Considering the way currency debasement is taking place, further upside should not be ruled out... Prices on COMEX can test the $1,980-$1,985 level in a month's time."

The dollar index .DXY languished near a 10-week low. USD/

Democrat Biden clinched the presidency on Saturday clearing the threshold of 270 Electoral College votes. Republicans appear to have retained control of the Senate, although the final makeup may not be clear until runoff votes in Georgia in January. potentially divided U.S. congress may mean a smaller fiscal stimulus package, but that could put the spotlight on the Federal Reserve to prop up the economy. tends to benefit from widespread stimulus as it is considered a hedge against inflation and currency debasement.

As the pandemic is shaping the economic backdrop, investors will continue to see low interest rates and a weaker U.S. dollar and that should help gold perform relatively well, said ANZ analyst Daniel Hynes. coronavirus infections surpassed 50 million on Sunday, a Reuters tally showed. gold may rise to $1,975, having cleared resistance at $1,951, Reuters technical analyst Wang Tao said. XAG= rose 0.8% to $25.79 per ounce. Platinum XPT= climbed 1.4% to $901, while palladium XPD= fell 1.3% to $2,458.48.

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