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CORRECTED-PRECIOUS-Gold gains on weaker dollar, virus woes ahead of US election

Published 10/23/2020, 06:13 PM
Updated 10/23/2020, 06:50 PM
© Reuters.
XAU/USD
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XAG/USD
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(Corrects date of election in first paragraph)
* Gold up 0.5% this week, silver 2.3%
* Dollar set to fall 1% for the week
* Interactive graphic tracking global spread of coronavirus:
https://graphics.reuters.com/world-coronavirus-tracker-and-maps/

By Asha Sistla
Oct 23 (Reuters) - Gold firmed above $1,900 an ounce on
Friday, en route to a weekly gain, as the dollar weakened and as
investors hedged against uncertainties surrounding the
coronavirus pandemic and going into the Nov. 3 U.S. presidential
election.
Spot gold XAU= rose 0.3% to $1,909.10 per ounce by 0946
GMT and was up 0.5% for the week. U.S. gold futures GCcv1
gained 0.4% to $1,912.
"Gold is getting some boost from the dollar weakening and we
have the U.S. elections and there's still a lot of uncertainty.
Also, there are talks about the U.S. stimulus package in
negotiation," said Bank of China International analyst Xiao Fu.

The dollar index .DXY fell 0.2% against its rivals, making
dollar-denominated gold less expensive for holders of other
currencies. USD/
House Speaker Nancy Pelosi on Thursday reported progress in
talks with the Trump administration for another round of fiscal
aid and a deal could be reached "pretty soon". Even once the U.S. election results were known, "there still
could be uncertainty about policies and implementation running
until the end of the year, in turn supporting gold", Bank of
China International's Fu said.
There could also be additional inflows into gold exchange
traded funds - often a gauge of investor sentiment - on renewed
uncertainties over pandemic-related restrictions and the U.S.
election outcome, UBS analysts said in a note.
The final debate between U.S. President Donald Trump and his
Democratic challenger Joe Biden included contrasting views on
the pandemic. Countries across Europe implemented fresh restrictions as
coronavirus cases more than doubled over the last 10 days, while
the global tally touched about 41,178,000. Silver XAG= fell 0.2% to $24.70 per ounce, but was set for
a weekly rise. Platinum XPT= rose 0.2% to $886.50 and
palladium XPD= was flat at $2,372.99.

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