Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

PRECIOUS-Gold slips as dollar stems declines; election uncertainty caps losses

Published 24/10/2020, 02:16 am
© Reuters.
XAU/USD
-
XAG/USD
-
DX
-
GC
-
SI
-
PA
-
PL
-
DXY
-

(Updates prices)

* Silver up 1.5% this week

* Dollar set to fall about 1% for the week

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

By Asha Sistla

Oct 23 (Reuters) - Gold eased on Friday as the dollar recouped some losses, but uncertainty going into the Nov. 3 U.S. elections limited bullion's losses.

Spot gold XAU= fell 0.1% to $1,903.07 per ounce by 2:06 p.m. EDT (1806 GMT). U.S. gold futures GCcv1 settled unchanged at $1,905.20.

"Gold's moves are really mirroring the dollar at this point," said Tai Wong, head of base and precious metals derivatives trading at BMO. Gold is in a "restive" $1,890-$1,930 range with any dips to the bottom being lapped up, he added.

"The initial pop in gold (and slightly lower dollar) was due to the results of the last presidential debate not likely to make a difference in the election outcome, with (Democratic candidate Joe) Biden comfortably ahead."

Denting appeal for greenback-denominated bullion, the dollar index .DXY pared some of its losses, but was set to decline about 1% for the week. USD/

More than 50 million Americans have cast ballots with 11 days to go in the campaign. still remains stuck in its stimulus limbo range. Stimulus optimism faded after National Economic Council Director (Larry) Kudlow noted that negotiations still have policy and numerical disagreements," Edward Moya, senior market analyst at OANDA, said in a note.

Bullion has gained over 25% so far this year given its status as an inflation hedge amid unprecedented pandemic-driven stimulus across the world.

"Gold's fate will be determined on Election Day, a blue wave signals huge stimulus and hello $2,000, while a Biden victory with the Republicans keeping the Senate suggests a slower grind higher," Moya said.

Kudlow said on Thursday talks on a possible aid deal were ongoing but that larger policy differences with Democrats were unlikely to be resolved with the election less than two weeks away. XAG= dipped 0.8% to $24.55 per ounce but was set for a weekly rise. Platinum XPT= gained 2% to $904.36 and palladium XPD= rose 0.6% to $2,389.07.

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.