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

PRECIOUS-Gold rises as dollar weakens after ECB stands pat on policy

Published 11/09/2020, 02:07 am
Updated 11/09/2020, 04:18 am
© Reuters.
XAU/USD
-
XAG/USD
-
GC
-
SI
-
PA
-
PL
-
DXY
-

* ECB keeps policy unchanged

* Dollar slips

* Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Adds comment, updates prices)

By Sumita Layek

Sept 10 (Reuters) - Gold jumped 1% on Thursday, as the dollar weakened after the European Central Bank kept its policy unchanged and U.S. jobless claims held at high levels, dimming hopes of a quick economic recovery from the effects of the coronavirus pandemic.

Spot gold XAU= rose 0.5% to $1,956.06 per ounce at 2:01 p.m. EDT (1801 GMT), after hitting its highest level since Sept. 2 at $1,965.93.

U.S. gold futures GCv1 settled up 0.5% at $1,964.30.

"The ECB didn't really change its policy and so we're seeing the U.S. dollar dropping here. That's positive for gold," said Bart Melek, head of commodity strategies at TD Securities.

The dollar .DXY was down 0.1%, making gold cheaper for holders of other currencies, as the euro rose after ECB President Christine Lagarde said it is keeping a close eye on the exchange rate. USD/

U.S. weekly jobless claims hovered at high levels last week, suggesting a slowing labor market recovery. said the recovery was not happening as quickly as expected, adding that "there are concerns about a second wave of virus, commodity markets like oil are indicating that perhaps growth is slowing down and all monetary policy will be easing."

The U.S. Federal Reserve's next policy meeting is due on Sept. 15-16.

Meanwhile, the U.S. Senate blocked a Republican bill that would have provided around $300 billion in new coronavirus aid, as Democrats are pushing for more funding. are going to get continued economic stimulus (from the Fed and U.S. government), for at least another 6 months to a year, and that should keep gold supported," said Jeffrey Sica, founder of Circle Squared Alternative Investments.

Bullion has risen 29% this year on the back of unparalleled stimulus and near-zero interest rates from the global central banks.

Elsewhere, silver XAG= eased 0.2% to $26.98 per ounce, platinum XPT= gained 1.6% to $930.80 and palladium XPD= rose 1.7% to $2,309.93.

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.