🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

PRECIOUS-Gold gains on stimulus bets; Powell's speech in focus

Published 2020-08-26, 11:15 a/m
© Reuters.
XAU/USD
-
XAG/USD
-
GC
-
SI
-
PA
-
PL
-
DXY
-

* Dollar eases 0.1%

* Silver rises over 3%

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

By K. Sathya Narayanan

Aug 26 (Reuters) - Gold jumped over 1% on Wednesday as the dollar slipped on the eve of a speech from Federal Reserve Chairman Jerome Powell, and as investors bet on further stimulus to mitigate the impact of the coronavirus pandemic.

Spot gold XAU= rose 1% to $1,948.07 per ounce by 02:18 p.m. EDT (1818 GMT), after declining to a two-week low early in the session. U.S. gold futures GCv1 settled up 1.5% at $1,952.50.

"The dollar is showing a little bit of weakness. They (investors) are trading on hopes and expectations that there is further stimulus to come," said Jeffrey Christian, managing partner of CPM Group.

The dollar .DXY eased 0.1% against key rivals, making gold cheaper for investors holding other currencies. USD/

Powell is set to speak at a virtual Jackson Hole symposium on Thursday, where he is expected to offer more insight on the U.S. central bank's strategy on inflation and monetary policy. week's Fed minutes gave few clues about whether a shift to easier policy is possible in coming months. central banks and governments have released massive stimulus to prop up their economies from the impact of the pandemic. This has pushed gold up about 28% so far this year as it is seen as a hedge against inflation and currency debasement.

"Investors are waiting for something to come from the U.S. Treasury, and for (the U.S.) Congress to come to an agreement (on the stimulus bill)," said Bob Haberkorn, senior market strategist at RJO Futures, adding that further dovishness from the Fed will also be bullish for gold.

Investors were watching for any developments in the U.S. coronavirus aid negotiations. U.S. Treasury Secretary Steven Mnuchin will testify before a House of Representatives panel next week. XAG= rose 3.5% to $27.34 an ounce, platinum XPT= was up 0.3% to $929.91 and palladium XPD= gained 0.9% to $2,183.43.

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.