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PRECIOUS-Gold hovers near one-week low after U.S. stimulus talks put on pause

Published 10/07/2020, 09:28 AM
Updated 10/07/2020, 09:30 AM
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Oct 7 (Reuters) - Gold prices on Wednesday hovered near a
one-week low hit in the previous session, after U.S. President
Donald Trump halted new stimulus talks, bolstering the dollar.

FUNDAMENTALS
* Spot gold XAU= was flat at $1,877.15 per ounce by 0107
GMT. Prices fell 2% on Tuesday hitting a one-week low of
$1,874.05.
* U.S. gold futures GCv1 were down 1.4% at $1,882.90.
* The dollar index .DXY was up 0.2% against rivals.
* Prospects for more aid for Americans struggling through
the COVID-19 pandemic and U.S. airlines seeking to avert a wave
of layoffs crumbled on Tuesday when Trump ended negotiations
until after the November election. * Gold tends to benefit from widespread stimulus measures as
it is widely viewed as a hedge against inflation and currency
debasement.
* Top U.S. and European central bankers on Tuesday called
for renewed government spending to support families and
businesses as the battle against the coronavirus-triggered
recession enters a newly critical phase. * The U.S. trade deficit surged in August to the largest in
14 years with imports climbing again, suggesting that trade
could be a drag on economic growth in the third quarter.
* Six U.S. states reported record numbers of hospitalized
COVID-19 patients, prompting new restrictions, while worldwide
cases have crossed 35.51 million.
* Holdings in SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, fell 0.32% to 1,271.52 tonnes
on Tuesday. * India's gold imports in September fell 59% from a year
earlier to the lowest level in four months, a government source
said on Tuesday. * Silver XAG= rose 0.7% to $23.25 per ounce, platinum
XPT= was up 1% at $856.51, while palladium XPD= dipped 0.1%
to $2,339.81.

DATA/EVENTS (GMT)
0600 Germany Industrial Output MM Aug
0645 France Reserve Assets Total Sept
0730 UK Halifax House Prices MM Sept
1800 US Federal Open Market Committee will release
minutes from its Sept. 15-16 policy meeting

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