Gold Prices Gain On Weaker Dollar, U.S. Stimulus Hopes

News18
·2-min read

Gold prices rose on Wednesday, propped up by a softer dollar and increasing hopes for a new U.S. coronavirus relief package ahead of the November elections.

FUNDAMENTALS

Spot gold rose 0.3% to $1,912.11 per ounce by 0039 GMT.

U.S. gold futures were steady at $1,916.40.

The dollar index was down 0.1% against rivals.

The White House and Democrats in the U.S. Congress moved closer to agreement on a fresh coronavirus aid as President Donald Trump said he was willing to accept a large aid bill despite opposition from his own Republican Party.

Gold is considered a hedge against inflation and currency debasement amid the unprecedented levels of global stimulus to ease the economic blow from the pandemic.

The current rise in U.S. infections may not dent the recovery too much, Chicago Federal Reserve Bank President Charles Evans said, adding he remains “reasonably optimistic” unemployment will fall to 5.5% by the end of next year.

A frustrated European Union and piqued Britain both exhorted the other to compromise to avoid a fast-approaching disruptive finale to the five-year Brexit drama that would add to economic pain from the coronavirus crisis.

Switzerland’s gold exports to China and India dwindled in September, with the country instead importing record volumes of bullion from Hong Kong and sending metal to Britain, customs data showed.

Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.23% to 1,269.93 tonnes on Tuesday.

Silver gained 0.7% to $24.82 per ounce, platinum rose 0.3% to $873.89. Palladium was up 0.2% at $2,402.64.

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