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PRECIOUS-Gold at one-week high on weak dollar; ECB meet in focus

Published 10/09/2020, 04:59
Updated 10/09/2020, 08:06
© Reuters.
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* ECB policy decision due at 1145 GMT
* ANZ expects gold prices reaching $2,300/oz next year
* Spot gold may rise more to $1,965/oz - technicals
* Interactive graphic tracking global spread of coronavirus:
open
https://tmsnrt.rs/3aIRuz7 in an external browser

(Updates prices)
By Brijesh Patel
Sept 10 (Reuters) - Gold steadied near a one-week high on
Thursday as the dollar weakened, but the metal traded in a
narrow $8 range as investors held back from making large bets
ahead of the European Central Bank's monetary policy decision
due at 1145 GMT.
Spot gold XAU= was little changed at $1,945.17 per ounce
by 0641 GMT, after hitting its highest since Sept. 3 at
$1,950.51 on Wednesday.
U.S. gold futures GCcv1 dipped 0.1% to $1,952.40.
"The U.S. dollar is a bit lower, stocks bounced a bit and
that essentially carried over to gold as well," said DailyFx
currency strategist Ilya Spivak.
Asian stock markets snapped their longest losing streak
since February following a bounce on Wall Street, while the
dollar index .DXY slipped from four-week highs, making gold
less expensive for holders of other currencies. USD/
MKTS/GLOB
Spivak said investors in gold may also be waiting for U.S.
CPI data and the Federal Reserve's two-day meeting next week, in
addition to the ECB announcement which is a key risk event.
The ECB is all but certain to keep policy unchanged when it
announces its decision, which will then be followed by a news
conference by its President Christine Lagarde. Major central banks have rolled out unprecedented stimulus
measures and kept interest rates low, driving gold to new highs
because of its role as a hedge against inflation and currency
debasement.
"Ample money supply, lower interest rates and macro
uncertainty should support gold investment," ANZ analysts said
in a note. "Physical demand is recovering, so we see the gold
price reaching $2,300/oz next year."
On the technical front, spot gold may rise more to $1,965
per ounce, as suggested by a projection analysis and a falling
channel, said Reuters technical analyst Wang Tao. TECH/C
Elsewhere, silver XAG= fell 0.4% to $26.92 per ounce,
platinum XPT= gained 0.7% at $922.33 and palladium XPD= rose
1.2% to $2,299.33.

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