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PRECIOUS-Gold firms on weaker dollar, U.S. stimulus hopes

Published 2020-10-08, 12:22 a/m
© Reuters.
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* Asian shares hit one-month high

* U.S. weekly jobless claims due at 1230 GMT

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

By Eileen Soreng

Oct 8 (Reuters) - Gold prices rose on Thursday, helped by a softer dollar and renewed optimism over some U.S. coronavirus relief aid, with investors eyeing the weekly jobless claims data to further gauge the health of the world's largest economy.

Spot gold XAU= rose 0.3% to $1,892.01 per ounce by 0727 GMT. U.S. gold futures GCv1 were up 0.3% at $1,896.

"Gold needs both fiscal and monetary policy to come into play," said Edward Moya, a senior market analyst at OANDA.

"The virus' spread is still strong in more states and also in Europe, and that is going to force policymakers and lawmakers to deliver more stimulus," Moya said.

After shutting down negotiations over a larger stimulus deal, Trump wrote on Twitter that Congress should pass money for airlines, small businesses, and stimulus checks of $1,200 for individuals, fuelling hopes for a partial deal. considered a hedge against inflation and currency debasement, has risen 24% this year, supported by massive government and central bank stimulus worldwide meant to revive their pandemic-hit economies.

Meanwhile, minutes from the U.S. Federal Reserve's September meeting offered no clear sense of the next steps to offset the coronavirus recession. Many policymakers said their economic outlook assumed additional fiscal support. now await U.S. employment data due at 1230 GMT. Jobless claims are predicted to decline, but continued claims are likely to remain above 10 million. dollar index .DXY was down 0.1% against rivals, while Asian shares hit a one-month high. USD/ MKTS/GLOB

"All factors are indicating a bullish momentum in gold ... Downside is limited and $1,850-$1,860 should be the bottom for gold and it should again move up to $1,920-$1,940," said Kunal Shah, head of research at Nirmal Bang Commodities in Mumbai, India.

Elsewhere, silver XAG= gained 0.7% to $24.01 per ounce. Platinum XPT= rose 0.1% to $865.36 per ounce, while palladium XPD= was 0.3% higher at $2,359.29.

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