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

PRECIOUS-Gold dips as dollar regains ground, all eyes on Fed speakers

Published 21/09/2020, 01:56 pm
© Reuters.
XAU/USD
-
XAG/USD
-
DX
-
GC
-
SI
-
PA
-
PL
-
DXY
-

* New coronavirus infections in Europe add to economic woes

* Gold likely to be range-bound for the week - analyst

* Interactive graphic tracking global spread of coronavirus: https://graphics.reuters.com/world-coronavirus-tracker-and-maps/ (Recasts, adds comment, updates prices)

By Eileen Soreng

Sept 21 (Reuters) - Gold prices erased earlier gains to trade lower on Monday due to an uptick in the dollar, while investors looked to Federal Reserve policymakers' speeches this week for signals on their approach to inflation.

Spot gold XAU= eased 0.1% to $1,947.19 per ounce by 0810 GMT. U.S. gold futures GCv1 fell 0.5% lower to $1,953.

The dollar index .DXY bounced up 0.1% against its rivals, making gold more expensive for holders of other currencies. USD/

Investors are now awaiting speeches by Fed committee members, including Chairman Jerome Powell, who will appear before Congressional committees later this week. focus on Jerome Powell will be how much he is going to try to sway the Senate to provide more stimulus," said Stephen Innes, chief market strategist at AxiCorp.

More stimulus in the United States could lead to a weaker dollar and that would be positive for gold, he added.

Gold has surged about 29% this year as governments and central banks worldwide released unprecedented stimulus measures to revive their coronavirus-battered economies.

But rising economic concerns with resurgence of COVID-19 cases globally cushioned some of bullion's losses. Major European cities announced restrictions again, while worldwide cases crossed 30.78 million. is likely to trade range-bound between $1,930 and $1,970 during the week," said Jigar Trivedi, commodities analyst at Mumbai broker Anand Rathi Shares.

Development of a coronavirus vaccine and dollar strength could trigger a correction in gold in the near term, he added.

Meanwhile, data from the Commodities Futures Trading Commission showed that speculators raised their net long position in COMEX gold by 10,622 contracts to 165,251 in the week ended Sept. 15. other precious metals, silver XAG= fell 0.5% to $26.62 per ounce, platinum XPT= rose 0.4% to $931.18 and palladium XPD= inched 0.1% higher to $2,358.48.

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.