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    Gold jumps on weaker dollar, US stimulus bets

    Synopsis

    "The gyrations on whether we are going to get a stimulus or not seems to be affecting gold prices; gold has rallied on huge stimulus from the U.S. Federal Reserve and the government, and if that continues, it will support gold further," said Robin Bhar, an independent analyst.

    GOLD.
    Spot gold was up 1.2% to $1,915.36 per ounce by 1135 GMT, up 0.9% this week. U.S. gold futures gained 1.4% to $1,921.30.
    Gold rose by more than 1% on Friday and was on course for a second straight weekly gain as the dollar weakened and renewed negotiations for U.S. stimulus prompted investors to buy bullion as a hedge against inflation.

    Spot gold was up 1.2% to $1,915.36 per ounce by 1135 GMT, up 0.9% this week. U.S. gold futures gained 1.4% to $1,921.30.

    "The gyrations on whether we are going to get a stimulus or not seems to be affecting gold prices; gold has rallied on huge stimulus from the U.S. Federal Reserve and the government, and if that continues, it will support gold further," said Robin Bhar, an independent analyst.

    U.S. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin resumed their talks over the coronavirus aid plan, after U.S. President Donald Trump called off negotiations earlier this week.

    "Investors who have a portfolio in equities, fixed income, will also try to find ways of hedging the uncertainty on the economy and the stimulus," Bhar added.

    Gold has gained 26% this year, boosted by massive stimulus globally to cushion the pandemic's economic impact.

    The dollar fell against rivals, amid growing bets that Joe Biden would win the U.S. presidential election and possibly offer more stimulus after that.

    The prospect of a Democrat win boosts the incentive to hold gold as a new relief package can be assembled if the ongoing stimulus talks fall apart, said OANDA analyst Craig Erlam.

    Meanwhile, gold-backed exchange traded funds added over 1,000 tonnes of bullion worth $60 billion to their stockpile in the first nine months of 2020, the World Gold Council said.

    Silver rose 2.3% to $24.36 per ounce and is up more than 2% this week. Platinum gained 2.2% to $881.33 and palladium climbed 2.2% to $2,423.30.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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