Gold Rises On Soft Dollar, Stimulus Bets As Virus Risks Grow
Gold Rises On Soft Dollar, Stimulus Bets As Virus Risks Grow
Gold gained on Thursday on a softer dollar and as the focus returned to the mounting number of coronavirus cases and their economic toll, raising investor expectations of further fiscal and monetary support.

Gold gained on Thursday on a softer dollar and as the focus returned to the mounting number of coronavirus cases and their economic toll, raising investor expectations of further fiscal and monetary support.

Spot gold rose 0.5% to $1,813.40 per ounce by 1002 GMT. U.S. gold futures were up 0.4% to $1,812.10.

“We’ve had a relatively soft dollar and it hasn’t given that much of a lift to gold during the decline. Now it’s giving a little bit of a tailwind, giving it a lift back towards $1,860,” said independent analyst Ross Norman.

“(Gold) has found its floor and there’s some evidence of good buying at these lower levels. The lower price has stimulated good physical buying in the (Asian) markets.”

The dollar index held close to nearly three-month lows, increasing gold’s appeal for other currency holders. Meanwhile, an extension of coronavirus restrictions in Germany and a weak growth forecast for Britain kept European shares flat.

Trading was expected to be thinned by the U.S. Thanksgiving holiday.

U.S. Federal Reserve policymakers discussed how the central bank’s asset purchases could be adjusted to provide more support for markets in the minutes to its Nov. 4-5 meeting.

“Persistently high numbers of new corona cases and extended lockdowns in many countries are increasing the need for further support in the form of monetary and fiscal policy. A vaccine will offer no quick-fix in that sense,” said Commerzbank analyst Carsten Fritsch in a note.

“New stimulus measures are therefore likely to be set in motion in the near future, which should benefit gold. In this environment, gold is initially likely to trend sideways in a corridor of between $1,800 and $1,850.

Gold is considered a hedge against inflation likely to result from large stimulus.

Silver was up 0.2% to $23.35 an ounce, palladium rose 1.8% to $2,371.53, while platinum fell 0.3% to $960.40.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

Read all the Latest News, Breaking News and Coronavirus News here

What's your reaction?

Comments

https://chuka-chuka.com/assets/images/user-avatar-s.jpg

0 comment

Write the first comment for this!