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PRECIOUS-Gold hits over one-week low as dollar gains ground

Credit: REUTERS/HEINZ-PETER BADER

Gold prices fell to an over one-week low on Monday, as the dollar firmed and talks about the new U.S. coronavirus aid package showed no signs of progress.

* Gold hits over one-week low of $1,890.19/oz

* Interactive graphic tracking global spread of coronavirus: https://graphics.reuters.com/world-coronavirus-tracker-and-maps/ (Adds comments, updates prices)

By Eileen Soreng

Oct 26 (Reuters) - Gold prices fell to an over one-week low on Monday, as the dollar firmed and talks about the new U.S. coronavirus aid package showed no signs of progress.

Spot gold fell 0.1% to $1,898.28 per ounce by 0347 GMT, after hitting $1,890.19, its lowest since Oct. 15.

U.S. gold futures were down 0.3% at $1,899.30.

"In the near-term, there seems to be a lack of impetus to find extra buyers (for gold)... A lot of it is because we're trading in the looming shadow of the U.S. elections and stimulus speculation," said IG Markets analyst Kyle Rodda.

The dollar index was up 0.2% against a basket of currencies. [USD/]

U.S. House Speaker Nancy Pelosi on Sunday said the Trump administration was reviewing the latest plan for more COVID-19 relief and that she expected a response on Monday.

With the November presidential elections fast approaching, analysts say a victory for Democrat rival Joe Biden could help gold rally on the back of a potential large stimulus package.

"It is unlikely we may see much (gold) price volatility before next week's U.S. Presidential voting," OCBC said in a note.

"We expect prices to continue trading close to the $1,900/oz level this week."

Rising COVID-19 cases in the United States are underpinning the need for more stimulus. According to a Reuters tally, hospitalizations are rising and have hit a two-month high.

France registered record increase in infections over the weekend and Spain announced a state of emergency as a second wave of cases surges through Europe.

Widely viewed as a hedge against inflation and currency debasement, bullion has gained 25% this year as central banks and governments globally unveiled unprecedented stimulus measures to cushion the economic fallout from the pandemic.

Elsewhere, silver dipped 1.1% to $24.32 per ounce. Platinum fell 1.4% to $889.30 and palladium was down 0.7% to $2,375.54. (Reporting by Eileen Soreng in Bengaluru; Editing by Richard Chang and Rashmi Aich) ((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.

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