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

Gold slides nearly 2% on dollar rally, IMF silver lining

Published 14/10/2020, 02:00 am
XAU/USD
-
XAG/USD
-
GC
-
SI
-
PA
-
PL
-
DXY
-

* Dollar rises 0.5%

* IMF says forecasts for global economy 'somewhat less dire'

* Interactive graphic tracking global spread of coronavirus: https://graphics.reuters.com/world-coronavirus-tracker-and-maps/ (Updates prices)

By Sumita Layek

Oct 13 (Reuters) - Gold fell as much as 1.9% on Tuesday, to below $1,900 an ounce, as the dollar rallied on an impasse over U.S. stimulus and as investors latched onto a slightly less stark economic report card from the International Monetary Fund.

Spot gold XAU= fell 1.7% to $1,890.01 per ounce by 1:34 p.m. EDT (1734 GMT). U.S. gold futures GCv1 settled down 1.8% at $1,894.60.

"The stagnation in Washington over the next stimulus package continues to pressure assets like gold that were relying on the weakness in dollar for the next wave of support," said David Meger, director of metals trading at High Ridge Futures.

"The IMF and other agencies like the U.S Federal Reserve have also noted that recovery has taken place a little quicker than they originally anticipated, so that would lead us to believe that there could be a need of lesser stimulus worldwide."

The dollar .DXY jumped 0.5% against rivals, making gold more expensive, after U.S. House Speaker Nancy Pelosi said the latest coronavirus stimulus package offer by President Donald Trump fell short of what the United States needs. USD/ IMF said forecasts for the global economy were "somewhat less dire" as wealthy countries and China rebounded more quickly than expected. has been toyed with" during negotiations for the fiscal stimulus deal, with the latest deadlock "taking away some of the short term bullish drivers we anticipated," said Edward Moya, a senior market analyst at OANDA.

"But all that means is that we're going to get the stimulus later, probably early next year and that will lead to higher gold prices."

Gold, considered a hedge against inflation and currency debasement, has risen 25% this year amid unprecedented global levels of stimulus during the pandemic.

Other metals too joined the slide, with silver XAG= diving 4.4% to $24.02 per ounce, platinum XPT= falling 1% to $864.69, and palladium XPD= declining 3.8% to $2,311.34.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Gold slides on dollar rally

https://tmsnrt.rs/2SQb2tv

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

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.