Breaking News
0
Ad-Free Version. Subscribe now to follow markets, faster and distraction-free. More details

PRECIOUS-Gold holds steady as weak U.S. data pauses Wall Street rally

CommoditiesNov 25, 2020 15:30
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

(Recasts; updates prices, market activity)

* Weekly jobless claims increase 30,000 to 778,000

* Fed officials discussed evolving role of asset purchases

* Dollar at near three-month low

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

By Shreyansi Singh

Nov 25 (Reuters) - Gold prices held steady on Wednesday as Wall Street retreated from a record run on an unexpected rise in U.S. jobless claims, and the precious metal bounced off a sharp slide toward $1,800.

Spot gold XAU= was little changed at $1,806.87 an ounce at 2:55 p.m. EST (1955 GMT), a day after hitting its lowest since July 17 at $1,800.01.

U.S. gold futures GCv1 settled up 0.1% at $1,805.50.

The U.S. Labor Department reported initial claims for state unemployment benefits last week increased to 778,000 from 748,000 in the prior week. jobless data is supportive for gold "just on notions that we've still got a very dark period ahead before we get through this pandemic," Kitco Metals senior analyst Jim Wyckoff said.

The surprise rise in weekly jobless claims amid surging COVID-19 infections dampened investor risk appetite and halted a record rally in Wall Street fuelled by vaccine hopes. .N MKTS/GLOB

Safe-haven gold has lost nearly $160 since Pfizer (NYSE:PFE)'s promising COVID-19 vaccine data boosted investors hopes for a quick economic rebound and prompted a shift towards riskier assets.

The dollar's slide "along with the technical support (for gold near $1,800), convinced some people to maybe stop selling and acquire some more positions," said Bart Melek, head of commodity strategies at TD Securities. USD/

Meanwhile, U.S. central bankers agreed asset purchases were providing accommodation to the economy after market conditions stabilized, according to the Federal Reserve minutes of the Nov. 4-5 meeting released on Wednesday.

Some participants in the Federal Open Market Committee said they expected the Fed to eventually lengthen the maturity of the bonds purchased, according to the deliberations.[ nW1N2HH01B]

Gold tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation and currency debasement.

Silver XAG= was up 0.3% at $23.31 an ounce, platinum XPT= inched up 0.1% to $960.47 and palladium XPD= was down 0.4% at $2,339.26.

PRECIOUS-Gold holds steady as weak U.S. data pauses Wall Street rally
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email