Gold slips to more than one-week low
Metal falls amid firmer dollar and as talks about the new US coronavirus aid package show no signs of progress
Bengaluru — Gold prices fell to a more than one-week low on Monday, as the dollar firmed and talks about the new US coronavirus aid package showed no signs of progress.
Spot gold fell 0.1% to $1,898.28/oz by 3.47am GMT, after hitting $1,890.19, its lowest since October 15. US gold futures were down 0.3% at $1,899.30.
“In the near-term, there seems to be a lack of impetus to find extra buyers [for gold].... A lot of it is because we’re trading in the looming shadow of the US elections and stimulus speculation,” said IG Markets analyst Kyle Rodda.
The dollar index was up 0.2% against a basket of currencies. US House speaker Nancy Pelosi on Sunday said the Trump administration was reviewing the latest plan for more Covid-19 relief and that she expected a response on Monday. With the November presidential elections fast approaching, analysts say a victory for Democrat rival Joe Biden could help gold rally on the back of a potential large stimulus package.
“It is unlikely we may see much [gold] price volatility before next week’s US presidential voting,” OCBC said in a note. “We expect prices to continue trading close to the $1,900/oz level this week.”
Rising Covid-19 cases in the US are underpinning the need for more stimulus. According to a Reuters tally, hospitalisations are rising and have hit a two-month high. France registered record increase in infections over the weekend and Spain announced a state of emergency as a second wave of cases surges through Europe.
Widely viewed as a hedge against inflation and currency debasement, bullion has gained 25% this year as central banks and governments globally unveiled unprecedented stimulus measures to cushion the economic fallout from the pandemic.
Elsewhere, silver dipped 1.1% to $24.32/oz. Platinum fell 1.4% to $889.30 and palladium was down 0.7% to $2,375.54.
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