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PRECIOUS-Gold rises on U.S. stimulus hopes, awaits jobs data

Published 2020-10-08, 05:40 a/m
© Reuters.
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* U.S. weekly jobless claims due at 1230 GMT

* Gold range-bound between $1,850-$2,070- analyst

* Interactive graphic tracking global spread of coronavirus: https://graphics.reuters.com/world-coronavirus-tracker-and-maps (Updates prices)

By Sumita Layek

Oct 8 (Reuters) - Gold rose on Thursday on hopes of a partial U.S. coronavirus stimulus deal to support the virus-stricken economy, while investors waited for the weekly jobless claims report from the world's largest economy.

Spot gold XAU= had risen 0.2% to $1,891.36 per ounce by 1130 GMT. U.S. gold futures GCcv1 were up 0.3% at $1,896.10.

"The short-term potential for additional stimulus and the longer term prospect for a Joe Biden-Kamala Harris win, which the market is viewing as inflationary, are thereby continuing to support gold, given the increased demand for hedging against future inflation," said Saxo Bank analyst Ole Hansen.

Global stocks rose on hopes for the partial stimulus deal, as President Donald Trump urged Congress to pass money for airlines, small businesses, and stimulus checks for individuals on Tuesday after abruptly calling off negotiations. MKTS/GLOB considered a hedge against inflation and currency debasement, has risen 24% this year following unprecedented government and central bank stimulus worldwide to revive economies.

Minutes from the U.S. Federal Reserve's September meeting offered no clear sense of the next steps to offset the coronavirus recession. Many policymakers said their economic outlook assumed additional fiscal support. focus is now on U.S. employment data due at 1230 GMT. Jobless claims are predicted to decline, but continued claims are likely to remain above 10 million. seems investors are in a wait-and-see mode as they are still hoping for new stimulus from central banks to help the economy's recovery," ActivTrades chief analyst Carlo Alberto De Casa said in a note.

"Bullion remains in a lateral trading range between $1,850 and $2,070, waiting for a clear new direction."

Among other metals, silver XAG= gained 0.5% to $23.96 per ounce. Platinum XPT= was flat at $863.77, while palladium XPD= rose 0.7% to $2,369.17.

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