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

PRECIOUS-Gold dips on dollar bounce as investors see U.S. election race tighten

Published 04/11/2020, 01:26 pm
Updated 04/11/2020, 03:54 pm
XAU/USD
-
XAG/USD
-
GC
-
SI
-
PA
-
PL
-
DXY
-

* Trump leads Biden in Florida

* Gold to trade in choppy, $1,890 to $1,920 range - analyst

* Interactive graphic tracking global spread of coronavirus: open

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

By Nakul Iyer and Eileen Soreng

Nov 3 (Reuters) - Gold fell on Wednesday as the dollar strengthened after U.S. President Donald Trump grabbed an early lead in the key state of Florida, muddying the path for his Democratic rival Joe Biden.

Spot gold XAU= fell 0.6% to $1,896.44 per ounce by 0358 GMT, having earlier shed as much as 1%.

U.S. gold futures GCcv1 fell 0.7% to $1,897.10.

"The market is losing confidence in a clear run to a Biden victory at the moment ... We have seen the Biden trade unwind and a big effect of that is that we have seen the dollar strengthen," said IG Markets analyst Kyle Rodda.

Trump was leading Biden in the vital battleground state of Florida on Tuesday, while other competitive swing states that will help decide the election, including North Carolina, remained up in the air. were initially limbering up for a win for Biden, who was expected to inject the market with potentially large stimulus measures to help weather the economic fallout from the COVID-19 pandemic.

"I think the odds of a clean sweep are diminishing, almost by the minute. That reduces the possibility, or the likelihood at least, of a large stimulus program being agreed to in the first days of a Biden administration," said Matt Sherwood, head of investment strategy at Perpetual in Sydney.

Gold has gained about 25% so far this year on the back of unprecedented global stimulus amid the COVID-19 pandemic since bullion is considered an inflation hedge.

The dollar .DXY was up 0.7% against a basket of major currencies. .DXY

"Gold has faded ahead of resistance at $1,912 and is suffering as it appears Trump will hold the key swing state of Florida," said Jeffrey Halley, senior market analyst at OANDA, predicting a "choppy $1,890 to $1,920 range" in the morning session.

Silver XAG= fell 1.6% to $23.77. Platinum XPT= dropped 0.9% to $858.77 and palladium XPD= was down 0.4% at $2,274.83.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Gold dips as dollar gains

https://tmsnrt.rs/38gwUae ETF stockpiles and gold prices

https://tmsnrt.rs/2TQFiVK

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

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.