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PRECIOUS-Gold lingers below $1,900 as dollar holds firm

Published 2020-10-13, 09:18 p/m
© Reuters.
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Oct 14 (Reuters) - Gold prices lingered below the key $1,900/ounce psychological level on Wednesday as lack of an agreement on additional U.S. fiscal stimulus helped the dollar stay firm.

FUNDAMENTALS

* Spot gold XAU= was little changed at $1,892.80 per ounce by 0053 GMT, after declining 1.6% in the previous session.

* U.S. gold futures GCv1 were steady at $1,896.60.

* The dollar index .DXY was steady after bouncing off a three-week low on Tuesday. USD/

* Hopes for a new coronavirus relief package were dented as U.S. House Speaker Nancy Pelosi rejected a $1.8 trillion proposal from the White House, saying it "falls significantly short of what this pandemic and deep recession demand." Global finance leaders on Tuesday said the world economy had escaped a coronavirus-triggered collapse so far, but warned that failure to conquer the pandemic, maintain stimulus and tackle mounting debt among poor nations could crush a fragile recovery. Expectations for a COVID-19 vaccine took backseat after Johnson & Johnson JNJ.N and Eli Lilly (NYSE:LLY) and Co LLY.N paused vaccine trials. Asian equities were set to slip on Wednesday as halted vaccine trials and an elusive U.S. stimulus agreement weighed on investor sentiment. MKTS/GLOB

* U.S. consumer prices increased for a fourth straight month in September, with the cost of cars and trucks rising by the most since 1969, but inflation is slowing amid excess capacity in the economy as it gradually recovers from the COVID-19 recession. Silver XAG= rose 0.2% to $24.22 per ounce, platinum XPT= was up 0.5% at $869.05, and palladium XPD= gained 0.6% to $2,329.97.

DATA/EVENTS (GMT)

0630 India WPI Inflation YY Sept

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