US Markets

PRECIOUS-Gold hit by steady dollar, fading U.S. stimulus hopes

Credit: REUTERS/Leonhard Foeger

Gold prices dipped on Thursday as the dollar steadied and comments from U.S. Treasury Secretary Steve Mnuchin dashed hopes of a new fiscal stimulus package before the presidential election.

* Gold to trade between $1,880-$1,920/oz in near-term - analyst

* Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Adds comments, updates prices)

By Eileen Soreng

Oct 15 (Reuters) - Gold prices dipped on Thursday as the dollar steadied and comments from U.S. Treasury Secretary Steve Mnuchin dashed hopes of a new fiscal stimulus package before the presidential election.

Spot gold fell 0.2% to $1,896.26 per ounce by 0320 GMT, after rising as much as 1.1% in the previous session.

U.S. gold futures were down 0.4% to $1,899.

"The (gold) market is still treading water waiting for further clarity on what stimulus package may be needed in the U.S.," said Cameron Alexander, manager of precious metals research at Refinitiv Metals Research.

"Gold will rise once the details of a possible stimulus package become available, but that may not happen for a while."

Mnuchin said he and House of Representatives Speaker Nancy Pelosi were "far apart" on another coronavirus economic relief package, and that a deal would be hard to reach before the Nov. 3 election.

The dollar index was up 0.1% against rivals, drawing support from rising coronavirus cases and scant progress towards the stimulus deal. [USD/]

Gold, considered a hedge against inflation and currency debasement, has climbed 25% this year amid the unprecedented levels of global stimulus to ease the economic blow from the pandemic.

"Gold should resume its longer-term rally after the election into the end of the year," said Jeffrey Halley, a senior market analyst at OANDA, adding the metal was likely to trade between $1,880 and $1,920 in the near-term.

Fuelling further concerns about an economic recovery, some European nations are closing schools, cancelling surgery and enlisting student medics as COVID-19 cases surge.

Silver fell 0.9% to $24.07 per ounce, platinum was flat at $857.04, and palladium eased 0.2% to $2,340.06. (Reporting by Eileen Soreng in Bengaluru; Editing by Subhranshu Sahu) ((eileen.soreng@thomsonreuters.com; Within U.S. +1 646 223 8780, Outside U.S. +91 80 6749 6131; Reuters Messaging: eileen.soreng.thomsonreuters.com@reuters.net)) Keywords: GLOBAL PRECIOUS/ (UPDATE 1)

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos

    Reuters

    Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

    Learn More