Gold bars on display. Picture: BLOOMBERG
Gold bars on display. Picture: BLOOMBERG

Bengaluru — Gold prices were little changed on Thursday as renewed hopes for more US stimulus kept the bullion afloat, with investors eyeing the weekly jobless claims data to further gauge the health of the world’s largest economy.

Spot gold was steady at $1,884.64/oz by 3.49am GMT, having risen as much as 1.1% in the previous session. US gold futures were down 0.2% at $1,887.70.

“Gold needs both fiscal and monetary policy to come into play,” said Edward Moya, a senior market analyst at Oanda. “The virus’s spread is still strong in more states and also in Europe, and that is going to force policymakers and lawmakers to deliver more stimulus,” Moya said, adding that the metal is now in a wait-and-see mode.

After shutting down negotiations over a new stimulus deal, President Donald Trump wrote on Twitter that Congress should pass money for airlines, small businesses and stimulus cheques of $1,200 for individuals.

Meanwhile, minutes from the US Federal Reserve’s September meeting offered no clear sense of their next steps to offset the coronavirus recession. Many policymakers said their economic outlook assumed additional fiscal support.

Gold, seen as a hedge against inflation and currency debasement, has risen 24% in 2020, supported by massive government and central bank stimulus worldwide.

The dollar index was little changed against rivals after declining overnight, while Asian shares hit a one-month high. “What the US dollar does around investors’ risk appetite is going to dictate what gold does,” said ANZ analyst Daniel Hynes.

Investors now await US employment data due later in the day. Jobless claims are predicted to decline, however, continued claims are likely to remain above 10-million.

Elsewhere, silver fell 0.3% to $23.78/oz, platinum dipped 0.5% to $859.92/oz, while palladium rose 0.2% to $2,357.02.

Reuters

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