Gold Steady As Coronavirus, U.S. Elections Uncertainty Loom
Gold prices were little changed on Wednesday, staying above the $1,900mark, as uncertainties about U.S. elections and surging global COVID19 cases countered pressure from a firmer dollar and fading hopes of an immediate U.S. stimulus package.
- Last Updated: October 28, 2020, 11:48 IST
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Gold prices were little changed on Wednesday, staying above the $1,900-mark, as uncertainties about U.S. elections and surging global COVID-19 cases countered pressure from a firmer dollar and fading hopes of an immediate U.S. stimulus package.
Spot gold was steady as $1,906.15 per ounce by 0329 GMT. U.S. gold futures were down 0.3% at $1,907.10.
“Investors need a reason to buy more gold and the reason to buy gold will come from a policy signal,” said Stephen Innes, chief global market strategist at Axi.
“With the virus raging all over, we are going to get stimulus at some point… This is also probably leaning towards more central bank intervention because the economic hit is going to be quite significant,” he added.
The pandemic has prompted unprecedented money printing and low-interest rates globally, putting gold on track for its best year in a decade given its appeal as a hedge against inflation and currency debasement.
The dollar index was up 0.2% against rivals, with the U.S. elections’ uncertainty adding to the “risk off” tone. GLOB]
Worries about the virus’ spread continued, with the United States, Russia, France and other countries seeing record new infections recently. European governments introduced new curbs to rein the fresh outbreaks.
On the technical front, spot gold may test a support at $1,887, as the bounce triggered by this support is ending around a resistance at $1,912, according to Reuters technical analyst Wang Tao.
Silver fell 0.9% to $24.33 per ounce, platinum rose 0.1% to $880, while palladium rose 0.8% to $2,348.81.
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