Gold firms on U.S. election, economic uncertainty; dollar strength caps gains
· Gold edged up on Thursday after a plunge in the previous session as surging global coronavirus cases and fears of a contested U.S. presidential election spurred demand, although a strong dollar capped gains.
· Spot gold rose 0.2% to $1,881.16 per ounce by 0413 GMT, after falling as much as 2% on Wednesday to a one-month low. U.S. gold futures were up 0.2% at $1,882.
· “If Biden wins and that becomes a clear outcome that would be supportive (of gold), because the expectation would be of more stimulus and a weaker dollar,” DailyFx currency strategist Ilya Spivak said.
· Concerns over the pace of the global economic recovery have also gripped markets in recent days as European countries impose new lockdowns to contain a second wave of virus infections.
· On investors’ radar now are central bank meetings, with the European Central Bank expected to hold off on new measures but instead hint at action in December.
· On Thursday, the Bank of Japan trimmed its economic and price forecasts for the current fiscal year, raising hopes it will maintain its massive stimulus program.
· Gold has gained 24% this year, helped by near-zero interest rates globally and unprecedented stimulus measures to ease the economic blow from the pandemic.
· Silver was flat at $23.41 per ounce, while platinum was steady at $867.74. Palladium rose 1% to $2,259.51.
Reference: CNBC
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