Gold steadies as election uncertainty offsets higher dollar, equities

By Arundhati Sarkar (Reuters) - Gold steadied on Thursday as uncertainty surrounding the U.S. presidential elections and bets that fresh stimulus would drive inflation offset downward pressure on bullion from a higher dollar and improved appetite for riskier assets. Spot gold was little changed at $1,889.21 per ounce by 11:18 am EDT (1518 GMT) flipping back and forth between positive and negative territory

Reuters October 09, 2020 00:06:10 IST
Gold steadies as election uncertainty offsets higher dollar, equities

Gold steadies as election uncertainty offsets higher dollar equities

By Arundhati Sarkar

(Reuters) - Gold steadied on Thursday as uncertainty surrounding the U.S. presidential elections and bets that fresh stimulus would drive inflation offset downward pressure on bullion from a higher dollar and improved appetite for riskier assets.

Spot gold was little changed at $1,889.21 per ounce by 11:18 am EDT (1518 GMT) flipping back and forth between positive and negative territory. U.S. gold futures rose 0.2% to $1,893.70.

While there is a "pretty robust increase in risk appetite," with a higher dollar also weighing, inflation expectations are keeping gold supported, said Bart Melek, head of commodity strategies at TD Securities.

"We're not saying that there's going to be an inflation problem right away, but the concern is that if the policies continue and are repeated post election, then we would likely see both a lower dollar and real rates that will likely move lower."

World shares headed for a one-month high as hopes for more stimulus offset Europe's rising numbers of coronavirus cases and lockdowns, in turn capping bullion's advance.

A higher dollar too kept gold in check.

But, gold was still up 24% so far this year, boosted by unprecedented government and central bank stimulus worldwide to revive economies as it is viewed as a hedge against inflation and a safe refuge during economic and politic uncertainties.

"It's (gold) going to move higher, it's going to be volatile. That's going to be true for the next month going into the election, it's going to be true for the two months after the election," said Jeffrey Christian, managing partner of CPM Group.

Among other metals, silver gained 0.3% to $23.92 per ounce. Platinum rose 0.3% to $866.95 per ounce, while palladium was 0.9% higher at $2,373.21.

(Reporting by Arundhati Sarkar in Bengaluru; Editing by Chris Reese)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.