Monday, January 17

Gold edges up as weaker dollar offsets news on Trump’s progress


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Gold inched up on Monday as the dollar

weakened, although gains were limited as news that US

President Donald Trump, receiving treatment for COVID-19, could

be released from hospital boosted risk sentiment.

Spot gold was up 0.1% at $1,900.46 per ounce by 0954

GMT. US gold futures were down 0.2% at $1,904.50.

“There are two opposing forces at work in the gold market,

on the one hand we’ve the perception that the US president is

doing better and that he may be released from the hospital today

and that’s driving positive risk sentiment,” said UBS analyst

Giovanni Staunovo.

And, on the other hand, “we see the dollar has started to

weaken again and this is offsetting the losses from the risk-on

sentiment,” he added.

Global stocks rose on Monday after news that Trump could be

discharged from hospital as soon as Monday, although outside

experts warned that his case may be severe.

The dollar was down 0.3% against rivals, making gold

cheaper for holders of other currencies.

Meanwhile, reinforcing the economic damage from the

coronavirus, data showed the euro zone’s economic recovery

faltered in September.

Investors are now focused on new US coronavirus relief aid

aimed at cushioning the economic blow from the pandemic.

“There is need for new stimulus measures to rally (gold)

prices. Without this mojo, there are signs of fatigue creeping

into precious metals,” Avtar Sandu, a senior commodities manager

at Phillip Futures, said in a note.

Gold has risen about 25% this year, supported by massive

stimulus by governments and central banks worldwide as the metal

is seen as a hedge against inflation and currency debasement.

Elsewhere, silver gained 1.1% to $23.95 per ounce,

platinum rose 0.1% to $882.41 and palladium

climbed 0.7% to $2,325.07.

(Reporting by Sumita Layek in Bengaluru; Editing by Susan

Fenton)



financialpost.com