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Gold ticks up on softer dollar, coronavirus woes

Published 27/10/2020, 12:34 pm
© Reuters.
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Oct 27 (Reuters) - Gold prices gained in early Asia trade on Tuesday, supported by a weaker dollar and concerns stemming from the surging coronavirus spread globally and its economic fallout.

FUNDAMENTALS

* Spot gold XAU= rose 0.3% to $1,907.77 per ounce by 0116 GMT.

* U.S. gold futures GCv1 were up 0.2% at $1,909.20.

* The dollar index .DXY slipped 0.1% against a basket of currencies, making gold cheaper for holders of other currencies. USD/

* The United States, Russia, France and many other countries are setting records for coronavirus infections as a tidal wave of cases washes over parts of the Northern Hemisphere, forcing some countries to impose new curbs. U.S. House of Representatives Speaker Nancy Pelosi is hopeful that congressional Democrats and the Trump administration can reach agreement on the coronavirus relief bill before the elections, however White House economic adviser Larry Kudlow told reporters on Monday that talks have slowed. Gold tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation and currency debasement.

* Sales of new U.S. single-family homes unexpectedly fell in September after four straight monthly increases, but the housing market remains supported by record low mortgage rates and demand for more space as the COVID-19 pandemic drags on. Britain said on Monday that time was very short to bridge the significant remaining gaps on key issues in talks with the European Union, as EU chief negotiator Michel Barnier heads to London to continue negotiations. Silver XAG= rose 0.5% to $24.43 per ounce, while platinum XPT= climbed 1% to $878.50 and palladium XPD= was up 0.3% to $2,358.03.

DATA/EVENTS (GMT)

1230 US Durable Goods

Sept

1400 US Consumer Confidence Oct

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