Gold rises on dollar dip, hopes for USA relief package

Cornelia Mascio
Ottobre 21, 2020

Gold prices rose, extending previous session gains as caution set in ahead of the deadline to reach an agreement on a new US coronavirus stimulus package and the upcoming presidential election.

Spot gold rose 0.1 percent to $1,907.01 per ounce by 0943 GMT, having hit a low of $1894.60 earlier, its lowest since October 15.

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Monday as the USA dollar weakened.

U.S. House Speaker Nancy Pelosi said on Sunday that differences remained with the Trump administration on a wide-ranging relief package but that she was optimistic legislation could be pushed through before Election Day.

Gold is strengthening on the dollar's downtrend and "the belief that some kind of stimulus package is going to come through in the next 48 hours", said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

Further underpinning safe-haven demand for bullion were concerns surrounding fresh coronavirus-led restrictions in Europe and elsewhere as worldwide infections crossed over 40 million, as well as uncertainty over the US elections.

Gold, widely viewed as a hedge against inflation and currency debasement, has risen about 25 percent this year as governments and central banks unleashed a wave of stimulus measures to limit economic damage from the pandemic.

The dollar index was flat versus rivals, while Asian stocks slipped as investors adjusted risk exposure heading into the election.

Citi in a note said it expects silver prices to rally to US$40 over the next 12 months, on the back of sustained investor demand and a recovery in industrial consumption during 2021.

Among other precious metals, silver rose 1.6% to $24.90 an ounce, platinum jumped 2.6% to $878.95 and palladium gained 2.2% to $2,397.04.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE