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PRECIOUS-Gold rises on softer dollar, U.S. stimulus hopes

Published 10/09/2020, 09:18 AM
Updated 10/09/2020, 09:20 AM
© Reuters.
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GC
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Oct 9 (Reuters) - Gold prices edged higher on Friday,
supported by a weaker dollar and optimism over a new U.S.
coronavirus relief aid after President Donald Trump said talks
with Congress have restarted.

FUNDAMENTALS
* Spot gold XAU= rose 0.3% to $1,898.31 per ounce by 0054
GMT.
* U.S. gold futures GCv1 were up 0.4% at $1,902.60.
* The dollar index .DXY was on track for a second
consecutive weekly decline. USD/
* In an interview, Trump said there was a good chance a deal
over COVID-19 relief could be reached, but gave no other details
about a possible agreement. * House of Representatives Speaker Nancy Pelosi said
legislation to help airline companies survive the fallout from
the pandemic could only move through Congress with guarantees
that a comprehensive aid bill would be developed too.
* Gold tends to benefit from widespread stimulus measures as
it is widely viewed as a hedge against inflation and currency
debasement.
* Trump's physician said on Thursday that the U.S. president
had completed his course of therapy for COVID-19, had remained
stable since returning to the White House and could resume
public engagements on Saturday. * Gold-backed exchange traded funds added more than 1,000
tonnes of bullion worth $60 billion at current prices to their
stockpile in the first nine months of 2020, driving a sizzling
price rally, the World Gold Council (WGC) said. * The world's central banks sold more gold in August than
they bought, the WGC said, ending a year-and-a-half-long run of
monthly gold accumulation and helping stall a rapid rise in gold
prices. * Silver XAG= rose 0.4% to $23.93 per ounce, platinum
XPT= gained 0.6% to $867.06, and palladium XPD= was up 0.3%
to $2,379.29.

DATA/EVENTS (GMT)
0145 China Caixin Services PMI Sept
0600 UK GDP Est 3M/3/M Aug
0600 UK GDP Estimate MM, YY Aug
0600 UK Manufacturing Output MM Aug

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