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PRECIOUS-Gold gains as U.S. jobs data, virus fears fuel stimulus hopes

Published 26/11/2020, 02:48 pm
© Reuters.
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(Updates prices, adds European futures)

* ANZ maintains 12-month gold price target of $2,100/oz

* European stock futures rise on vaccine, stimulus optimism

* Interactive graphic tracking global spread of coronavirus: open

* https://tmsnrt.rs/3aIRuz7 in an external browser

By Nakul Iyer

Nov 26 (Reuters) - Gold prices rose on Thursday, aided by a weaker dollar, as investors bet that grim U.S. jobs data and surging COVID-19 cases worldwide would spur authorities to announce further stimulus measures.

Spot gold XAU= rose 0.5% to $1,815.30 per ounce by 0748 GMT. U.S. gold futures GCv1 were up 0.4% at $1,812.70.

"We've seen risk sentiment improve because of the optimism over vaccines and those were the headwinds for gold," said Harshal Barot, a senior research consultant for South Asia at Metals Focus.

"But since the dollar continues to weaken, gold prices are finding a little bit of support."

The dollar index .DXY edged down 0.1%, strengthening gold's appeal to other currency holders. USD/

Barot said gold would find support at $1,795 per ounce and likely trade sideways in the near-term, until a "convincing" break above $1,850.

European stock futures rose as the market's euphoric mood over COVID-19 vaccines and on the prospects for stimulus under incoming President Joe Biden outweighed concerns around an uptick in weekly U.S. jobless claims. MKTS/GLOB vaccine narrative has watered down gold's appeal immensely and it will continue too until we finally move into an inflationary world," said Stephen Innes, chief global market strategist at financial services firm Axi.

U.S. Federal Reserve policymakers discussed how the central bank's asset purchases could be adjusted to provide more support to markets in the minutes to its Nov. 4 to 5 meeting. accommodative central bank policy, given the widespread unavailability of a vaccine until the second half of 2021 and dollar weakness means gold is well supported, ANZ said in a note, adding it maintains its 12-month price target of $2,100 per ounce. is seen as a hedge against inflation likely to result from large stimulus.

Silver XAG= rose 0.6% to $23.44 an ounce. Platinum XPT= gained 0.3% to $966.74 and palladium XPD= was rose 1.9% at $2,372.15.

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