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

PRECIOUS-Gold jumps 1% on uncertainty over recovery, U.S. elections

Published 2020-10-07, 12:22 a/m
XAU/USD
-
XAG/USD
-
GC
-
SI
-
PA
-
PL
-

* Gold's dip below $1,900 prompted short covering- trader

* 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/ (Recasts, adds comments, updates prices)

By Eileen Soreng

Oct 7 (Reuters) - Gold rose nearly 1% on Wednesday, bouncing back from early losses and a near 2% drop in the previous session, lifted by renewed fears over an economic recovery and uncertainty around the U.S. presidential election.

Spot gold XAU= rose 1% to $1,895.46 per ounce by 0727 GMT.

U.S. gold futures GCv1 were down 0.4% at $1,901.60.

"Gold, (in the) longer term, is still bullish" and is likely to continue the uptrend following the correction, said Brian Lan, managing director at dealer GoldSilver Central in Singapore, adding that the drop below $1,900 prompted some short-covering.

A low interest rate environment globally along with uncertainties stoked by the upcoming U.S. elections bodes well for gold, Lan added.

U.S. president Donald Trump, who is being treated for COVID-19, halted negotiations for an additional stimulus package until after the Nov. 3 election. announcement bolstered the U.S. dollar and dragged down gold, which is widely viewed as a hedge against inflation and currency debasement.

Trump later asked the Congress to extend $25 billion in new payroll assistance to U.S. passenger airlines. appears to be looking at things differently and scooping up gold on what seems to be a material dip in prices," said Jeffrey Halley, a senior market analyst at OANDA.

Investors are also awaiting minutes from U.S. Federal Reserve's Sept. 15-16 policy meeting due later in the day. policy is critical to where gold is going," said DailyFx currency strategist Ilya Spivak, adding, the minutes might reinforce the idea that the Fed is not looking to do more stimulus in the immediate near term.

The U.S. FDA released stringent guidelines for experimental coronavirus vaccines, delaying the availability of vaccine until after the presidential election. XAG= climbed 2.8% to $23.74 per ounce, platinum XPT= was up 2.4% to $868.92, while palladium XPD= rose 0.6% to $2,354.11.

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.