Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

PRECIOUS-Gold retreats as dollar gains on U.S. stimulus doubts

Published 10/22/2020, 12:11 PM
Updated 10/22/2020, 04:20 PM
© Reuters.

© Reuters.

(Updates prices)
* Asian shares drop as U.S. stimulus talks drag on
* Goldman Sachs forecasts gold at $2,300/oz over 12-month
horizon
* Interactive graphic tracking global spread of coronavirus:
open
https://tmsnrt.rs/3aIRuz7 in an external browser

By Nakul Iyer
Oct 22 (Reuters) - Gold fell on Thursday as the dollar
recovered some lost ground after doubts emerged on whether U.S.
lawmakers could reach agreement on a new coronavirus aid package
before the November presidential election.
Spot gold XAU= fell 0.3% to $1,919.65 per ounce by 0750
GMT, after hitting more than a one-week high on Wednesday. U.S.
gold futures GCv1 slipped 0.3% to $1,923.00.
"Without stimulus, there's a lot of uncertainty and that's
driving people to be a bit cautious and move towards the U.S.
dollar," said Michael Langford, executive director at corporate
advisory and consultancy firm AirGuide.
Stimulus talks between U.S. lawmakers faced a setback on
Wednesday when President Donald Trump accused Democrats of being
unwilling to craft a compromise on aid. The news dented risk sentiment and lifted the dollar .DXY
against its rivals, making gold more expensive for holders of
other currencies. USD/ MKTS/GLOB
"The Fed is not going to ease anymore, but there's no scope
for tightening and that could put a floor under gold," said
DailyFx currency strategist Ilya Spivak, adding that the metal
was unlikely to rally or fall "catastrophically".
Widely viewed as a hedge against inflation and currency
debasement, bullion has gained 26% this year as central banks
and governments globally unveiled unprecedented stimulus
measures to cushion the economic fallout from the pandemic.
Goldman Sachs forecast gold at $2,300 an ounce over a
12-month horizon and said commodities were likely headed for a
bull market next year.
Fiscal and monetary policy in developed markets continue to
drive interest rates low and spur demand for inflation hedges,
the Wall Street bank said. Investors now await the final U.S. presidential debate
between Trump and Democrat rival Joe Biden on Thursday night,
and weekly jobless claims due at 1230 GMT.
Elsewhere, silver XAG= fell 0.5% to $24.94, platinum
XPT= gained 0.3% at $888.47 and palladium XPD= dropped 0.1%
to $2,401.73.



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.