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PRECIOUS-Gold prices gain on weaker dollar, U.S. stimulus hopes

Published 21/10/2020, 02:05
© Reuters.
XAU/USD
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Oct 21 (Reuters) - Gold prices rose on Wednesday, propped up
by a softer dollar and increasing hopes for a new U.S.
coronavirus relief package ahead of the November elections.

FUNDAMENTALS
* Spot gold XAU= rose 0.3% to $1,912.11 per ounce by 0039
GMT.
* U.S. gold futures GCv1 were steady at $1,916.40.
* The dollar index .DXY was down 0.1% against rivals.
USD/
* The White House and Democrats in the U.S. Congress moved
closer to agreement on a fresh coronavirus aid as President
Donald Trump said he was willing to accept a large aid bill
despite opposition from his own Republican Party. * Gold is considered a hedge against inflation and currency
debasement amid the unprecedented levels of global stimulus to
ease the economic blow from the pandemic.
* The current rise in U.S. infections may not dent the
recovery too much, Chicago Federal Reserve Bank President
Charles Evans said, adding he remains "reasonably optimistic"
unemployment will fall to 5.5% by the end of next year.
* A frustrated European Union and piqued Britain both
exhorted the other to compromise to avoid a fast-approaching
disruptive finale to the five-year Brexit drama that would add
to economic pain from the coronavirus crisis. * Switzerland's gold exports to China and India dwindled in
September, with the country instead importing record volumes of
bullion from Hong Kong and sending metal to Britain, customs
data showed. * Holdings in SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, fell 0.23% to 1,269.93 tonnes
on Tuesday. * Silver XAG= gained 0.7% to $24.82 per ounce, platinum
XPT= rose 0.3% to $873.89. Palladium XPD= was up 0.2% at
$2,402.64.

DATA/EVENTS (GMT)
0600 UK CPI YY Sept
1800 US Federal Reserve issues the Beige Book of economic
condition

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