• MTS Gold Evening News 20200911

    11 Sep 2020 | Gold News

Gold slips from one-week peak hit by stronger dollar


·         Gold prices fell on Friday as the U.S. dollar rebounded, but the yellow metal was on track for a weekly gain underpinned by worries over a global economic recovery from the coronavirus-led slump.


·         Spot gold was down 0.8% at $1,938.53 per ounce by 0308 GMT, after hitting its best level since September 2 at $1,965.94 on Thursday. Gold has gained 0.4% this week.


·         U.S. gold futures fell 0.8% to $1,948.


·         “A rebound in the U.S. dollar index sent gold prices lower following the European Central Bank’s neutral tone last night,” said Margaret Yang, a strategist with DailyFx, which covers currency, commodity and index trading.


·         “The mid- to-long-term outlook remains bullish for gold, despite recent consolidation. An ultra-loose monetary policy and low yield environment is cushioning the downside.”


·         The dollar index bounced back on Friday following a steep drop against the euro in the previous session and was on track for its best week since mid-May. A stronger greenback makes gold more expensive for holders of other currencies.


·         Casting a shadow over hopes for a quick economic rebound, U.S. weekly jobless claims hovered at high levels last week, suggesting a slowing labor market recovery.


·         Gold prices have climbed 28% this year as governments and major central banks pumped massive stimulus into the economy and kept interest rates low to alleviate the economic toll of the coronavirus.


·         The U.S. Senate blocked a Republican bill that would have provided around $300 billion in new coronavirus aid, as Democrats push for more funding.


·         Investors’ focus will now shift to British GDP data and U.S. inflation data due later in the day.


·         Elsewhere, silver dropped 1.2% to $26.61 per ounce and palladium lost 0.7% to $2,278.86.


·         Platinum eased 0.4% to $922.43, but was heading for its best week since week-ending August 7, up 3%.


Reference: CNBC

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