Latest News

Irish News

Click Here to read Irish News

Forex News

Click Here to read Forex News

Market News

Click Here to read Market News

Irish News
/fxcentre/i-want-to/read-news
PRECIOUS-Gold gains on weaker dollar, U.S. stimulus bets
Published at 19/10/2020 at 13:10

* Silver could rally to $40/oz over next 12 months- Citi

* Pelosi optimistic of U.S. fiscal aid before elections

* Interactive graphic tracking global spread of coronavirus: open in an external browser

(Updates prices)

By Brijesh Patel

Oct 19 (Reuters) - Gold climbed on Monday as a softer dollar and optimism over a new U.S. stimulus agreement before next month's presidential election lifted demand for bullion as an inflation hedge.

Spot gold was up 0.7% at $1,912.22 per ounce by 1147 GMT. U.S. gold futures rose 0.5% to $1,916.

The dollar slipped 0.2% versus rivals, making gold less expensive for holders of other currencies.

"The continued focus on the potential for a stimulus package being agreed to and introduced before the Nov. 3 election is continuing to impact gold," said Saxo Bank analyst Ole Hansen.

"It seems like both parties are still, at least on paper, in discussion and keeping the door open for a deal to be reached... That's probably the key source of inspiration to a market that I would say in general has gone a bit stale."

U.S. House Speaker Nancy Pelosi said on Sunday that differences remained with the Trump administration on a wide-ranging relief package but that she was optimistic legislation could be pushed through before Election Day.

Gold, which has gained over 26% so far this year, tends to benefit from stimulus spending because it's considered a hedge against inflation risks and currency debasement.

"We expect gold to trade cautiously around $1,900 level for now, the game changer being whether we can get (U.S) fiscal stimulus in the next 48 hours," said Howie Lee, economist at OCBC Bank.

Concerns around fresh coronavirus-led restrictions in Europe and elsewhere also bolstered gold's safe-haven appeal.

Elsewhere, silver climbed 2.7% to $24.82, having hit a near one-week peak.

Citi said in a note it expects silver to rally to $40 over the next 12 months, on sustained investor demand and a recovery in industrial consumption in 2021.

Platinum gained 1.7% to $874.50 per ounce and palladium rose 0.8% to $2,349.17.

(Reporting by Brijesh Patel in Bengaluru; editing by Emelia Sithole-Matarise and Andrew Heavens)

((Brijesh.Patel1@thomsonreuters.com; Within U.S. +1 651 848 5832, Outside U.S. +91 8067493865; Reuters Messaging: Brijesh.Patel1.thomsonreuters.com@reuters.net))