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

PRECIOUS-Gold slips from three-week high as dollar ticks up

Published 12/10/2020, 08:45 pm
Updated 12/10/2020, 11:30 pm
© Reuters.
XAU/USD
-
XAG/USD
-
DX
-
GC
-
SI
-
PA
-
PL
-
DXY
-

* Trump administration calls for stripped-down relief bill

* Consolidation above $1,920/oz supportive for gold - analyst

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

By Brijesh Patel

Oct 12 (Reuters) - Gold slipped from a three-week peak on Monday as the dollar recovered some ground, but the prospect of more U.S. coronavirus relief spending and uncertainty surrounding next month's presidential election put a floor under prices.

Spot gold XAU= was down 0.2% at $1,925.56 per ounce at 1213 GMT, after hitting its highest level since Sept. 21 at $1,932.96 earlier in the session.

U.S. gold futures GCcv1 edged up 0.2% to $1,931.50.

"We've seen a bit of a modest dollar rebound," said Michael Hewson, chief market analyst at CMC Markets UK.

"I'm still very much of the opinion that we need to buy in the dip as, ultimately, the prospect of further stimulus post the U.S. election is helping support gold prices," he added.

The dollar index .DXY rose 0.1%, crawling away from a three-week low touched in the previous session. A stronger dollar tends to weigh on gold by making it more expensive for holders of other currencies. USD/

Gold, which has gained over 27% so far this year, tends to benefit from stimulus spending because it is considered a hedge against inflation risks and currency weakening. It is also in demand at times of heightened market uncertainty.

The Trump administration on Sunday called on Congress to pass a stripped-down coronavirus relief bill using leftover funds, as negotiations on a broader package stalled ahead of the Nov. 3 presidential election. are in a wait-and-see scenario, as investors try to understand what is going to happen in early November with the U.S. election and the subsequent reaction of both stocks and currency markets," ActivTrades chief analyst Carlo Alberto De Casa said in a note. MKTS/GLOB

"Technically gold is regaining strength, with the consolidation above $1,920 a supportive signal for bullion and confirming traders' huge interest."

Elsewhere, silver XAG= gained 0.3% to $25.19 per ounce, palladium XPD= rose 0.3% to $2,445.89, while platinum XPT= eased 0.2% to $884.35.

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.