NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

PRECIOUS-Gold hits one-week peak as U.S. stimulus hopes dent dollar

Published 21/10/2020, 08:45 pm
© Reuters.
XAU/USD
-
XAG/USD
-
DX
-
GC
-
SI
-
PA
-
PL
-
DXY
-

* Dollar slips to one-week low

* Stimulus hopes lift risk sentiment

* Interactive graphic tracking global spread of coronavirus: open

* https://tmsnrt.rs/3aIRuz7 in an external browser (Updates prices)

By Brijesh Patel

Oct 21 (Reuters) - Gold prices rose to a one-week high on Wednesday as the dollar weakened on renewed hopes for a new U.S. stimulus package ahead of the Nov. 3 election.

Spot gold XAU= was up 0.6% at $1,917.57 per ounce by 1212 GMT, after touching its highest since Oct. 13. U.S. gold futures GCv1 rose 0.3% to $1,920.90 per ounce.

"There seems to be increasing hope that a stimulus deal can get through Congress before election day...This is broadly keeping risk appetite supported in the U.S., dragging on the dollar and lifting gold prices," OANDA analyst Craig Erlam said.

The dollar index .DXY fell to a one-month low against its rivals, making gold less expensive for holders of other currencies. USD/

The White House and Democrats in the U.S. Congress moved closer to agreement on Tuesday as President Donald Trump said he was willing to accept a large aid bill despite opposition from his Republican Party. comments from Trump also lifted equities. MKTS/GLOB

Gold, considered a hedge against inflation, currency debasement and uncertainty, has gained more than 26% this year, driven mainly by unprecedented levels of global stimulus to cushion economies from the coronavirus-induced slump.

"There however appears no definite clarity on the continued shifting of positions on the stimulus relief bill which shorter-term traders can price into the precious metals market," Phillip Futures analysts said in a note.

"Long term investors have shifted focus on what the November election outcome means for stimulus later, with a Democrat victory seen boosting gold's sentiment with a very large stimulus package."

Elsewhere, silver XAG= rose 1.3% to $24.97 per ounce, platinum XPT= gained 0.9% to $878.93 and palladium XPD= eased 0.2% to $2,395.22.

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.