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PRECIOUS-Gold muted on firmer dollar, heads for worst week in over a month

Published 2020-10-29, 09:27 p/m
© Reuters.
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Oct 30 (Reuters) - Gold prices lingered near the one-month low hit in the previous session on Friday, as the dollar strengthened and hopes of an immediate U.S. coronavirus aid package waned.

FUNDAMENTALS

* Spot gold XAU= was flat at $1,867.30 per ounce by 0108 GMT and was on track to post its worst week in over a month.

* U.S. gold futures GCv1 were down 0.1% at $1,866.20.

* The dollar index .DXY was steady near a one-month peak touched on Thursday and is on track for it best week since late September. USD/

* President Donald Trump's chief economic adviser said on Thursday that any deal on coronavirus relief legislation would have to wait for now. The U.S. economy grew at a historic pace in the third quarter as the government injected more than $3 trillion worth of pandemic relief which fuelled consumer spending, but the effects of the COVID-19 recession is likely to linger for longer. The European Central Bank committed on Thursday to take new action in December to contain the growing fallout from a second wave of coronavirus infections, likely in the form of more bond purchases or cheap credit for banks. The discount of Chinese gold to international prices is expected to narrow in the fourth quarter as a recovery in the investment and wedding sectors boosts demand, a World Gold Council official said on Thursday. Silver XAG= rose 0.3% to $23.35 per ounce. Platinum XPT= was up 0.3% at $850.30 and palladium XPD= gained 0.4% at $2,199.64.

DATA/EVENTS (GMT)

0700 UK

Nationwide House Price MM, YY Oct

0900 Germany GDP Flash QQ SA, YY NSA

Q3

1000 EU

HICP Flash YY

Oct

1000 EU

HICP-X F&E Flash YY

Oct

1000 EU

GDP Flash Prelim YY, QQ

Q3

1000 EU

Unemployment Rate

Sept

1230 US

Consumption, Adjusted MM

Sept

1400 US

U Mich Sentiment Final

Oct

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