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PRECIOUS-Gold eases as dollar firms; U.S. election debate in focus

Published 23/10/2020, 02:32
© Reuters.
XAU/USD
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XAG/USD
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GC
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Oct 23 (Reuters) - Gold prices dipped on Friday, weighed by
a stronger dollar, as investors kept a close watch on the final
U.S. presidential election debate and sought further clarity on
a coronavirus aid package.

FUNDAMENTALS
* Spot gold XAU= fell 0.1% to $1,902.57 per ounce by 0110
GMT, after slipping more than 1% in the previous session.
* U.S. gold futures GCv1 were little changed at $1,904.80
per ounce.
* The dollar index rose against a basket of currencies,
dimming bullion's appeal to other currency holders. USD/
* U.S. House Speaker Nancy Pelosi on Thursday said
negotiators were making progress in talks with the White House
over a new coronavirus fiscal aid package and a deal could be
reached "pretty soon". * White House economic adviser Larry Kudlow however
cautioned that there were still "significant policy differences"
unlikely to be resolved before the election.
* Investors are also watching out for the final U.S.
presidential debate that began at 9 p.m ET on Thursday.
* U.S. data showed that weekly jobless claims dropped more
than expected, while home sales surged to a more than 14-year
high in September. * With time fast running out, Britain and the European Union
began intensified daily talks on Thursday, in a final push for a
Brexit deal.
* Strong investor demand for gold will keep prices high and
offset the likely slump in demand from jewellers and central
banks next year, Refinitiv Metals Research said.
* Holdings of the largest gold-backed exchange-traded-fund
(ETF), the SPDR Gold Trust GLD , fell 0.1% on Wednesday to 40.8
million ounces from Tuesday. * Silver XAG= fell 0.8% to $24.56 per ounce, while
platinum XPT= dropped 0.4% to $880.94 and palladium XPD=
rose 0.3% to $2,379.50.

DATA/EVENTS (GMT)
0800 EU Oct. Markit Manufacturing, Services Flash PMI

0830 UK Oct. Manufacturing, Services Flash PMI
1345 US Oct. Manufacturing, Services Flash PMI

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