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
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