👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

PRECIOUS-Gold firms as dollar eases; ECB meeting eyed

Published 2020-09-09, 11:41 a/m
© Reuters.
XAU/USD
-
XAG/USD
-
GC
-
SI
-
PA
-
PL
-
DXY
-

* Dollar dips 0.2%

* ECB's growth, inflation forecasts to show slight changes- Bloomberg

* News of vaccine delay indirectly supportive for gold -analyst

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

By Sumita Layek

Sept 9 (Reuters) - Gold prices rose to their highest level in nearly a week on Wednesday, as the dollar weakened and concerns over a delay in the development of a coronavirus vaccine drove investors toward the safe-haven metal.

Spot gold XAU= rose 0.7% to $1,945.20 per ounce by 2:00 pm EDT (1800 GMT), shaking off initial declines. U.S. gold futures GCv1 settled up 0.6% at 1,954.90.

"We are seeing some cracks in the dollar after the European Central Bank painted a little bit of a rosy picture and gold is moving higher on that," said Bob Haberkorn, senior market strategist at RJO Futures.

The dollar .DXY fell 0.2% after Bloomberg reported the ECB's growth and inflation projections to be published on Thursday will show only slight changes compared with the bank's June forecasts. USD/ board member Isabel Schnabel said earlier that economic developments since June have been broadly in line with the bank's expectations so the bank's "baseline" still held.

Meanwhile, global trials of AstraZeneca's experimental COVID-19 vaccine were paused due to an unexplained illness in a study participant. news of the delay may be indirectly supportive for gold, as it could spell a prolonged economic slowdown and further expectations of fiscal stimulus, said Saxo Bank analyst Ole Hansen.

The pandemic has forced major central banks to provide massive stimulus, helping gold gain about 28% so far this year since it is considered a hedge against potential currency debasement and inflation.

"But this rally in gold seems to be fragile," Haberkorn said. "From a technical standpoint we need gold to close above $1,950 for the bulls to take control."

Elsewhere, platinum XPT= jumped 1.8% to $917.32 an ounce. On Tuesday, the World Platinum Investment Council changed its forecast for the market in 2020 from a surplus to a deficit. XAG= rose 0.7% to $26.88, while palladium XPD= rose 0.8% to $2,292.98.

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.