🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

PRECIOUS-Gold gains as concerns over U.S. stimulus talks ease

Published 2020-10-07, 06:50 a/m
© Reuters.
XAU/USD
-
XAG/USD
-
GC
-
SI
-
PA
-
PL
-

* Fed's Sept. 15-16 policy meeting minutes due at 1800 GMT

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

By Sumita Layek

Oct 7 (Reuters) - Gold rebounded on Wednesday as worries about a halt in U.S. coronavirus stimulus talks faded, bolstering bullion's appeal as a hedge against inflation and prompting investors to cover short positions after a near 2% decline in the last session.

Spot gold XAU= rose 0.5% to $1,886.16 per ounce at 1142 GMT. U.S. gold futures GCcv1 fell 1% to $1,889.60.

Gold fell nearly 2% on Tuesday after U.S. President Donald Trump halted negotiations for an additional stimulus package until after the Nov. 3 election. However, he later suggested new payroll assistance to U.S. passenger airlines. has been some short covering which has revived the market off the lows. Gold is finding its way back to the $1,900s, it's less a case of whether there is going to be a stimulus package and more of the timing," said independent analyst Ross Norman.

"The Democratic leader has a significant lead (in the election polls) and the markets are turning to what would that entail, certainly the suggestion is the Democrats, if they were to be successful, will be pushing through a significantly larger stimulus package," Norman said.

Gold, seen as a hedge against inflation and currency debasement, has risen 24% this year, supported by massive government and central bank stimulus worldwide.

"Overall, it's the reaction in the bond markets, the yields are lower, the U.S. dollar is a bit weaker against the euro," said Quantitative Commodity Research analyst Peter Fertig. USD/ US/

Fertig added the uncertainty from the upcoming U.S. elections would keep gold supported.

Investors now await minutes from U.S. Federal Reserve's Sept. 15-16 policy meeting due later in the day. also took stock of stringent guidelines for experimental coronavirus vaccines released by the U.S. FDA, delaying the availability of vaccine until after the election. silver XAG= climbed 1.8% to $23.50 per ounce, platinum XPT= gained 1.3% to $859.44, while palladium XPD= rose 0.5% to $2,352.74.

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.