PRECIOUS METALS-Gold falls from 3-week highs on dollar advance

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PRECIOUS METALS-Gold falls from 3-week highs on dollar advance




Stock image of gold bars at the Altyntau Mining Factory in Kokshetau, Kazakhstan.


© Reuters/Andrey Lunin
Stock image of gold bars at the Altyntau Mining Factory in Kokshetau, Kazakhstan.


By Brijesh Patel

Oct 12 (Reuters) – Gold prices fell from a three-week high on Monday as the dollar regained some ground, albeit the possibility of another coronavirus aid package being approved soon and uncertainty surrounding prices. US elections helped limit the metal’s losses.

* Spot gold was down 0.5% to $ 1,920.51 an ounce at 0920 GMT, after reaching $ 1,932.96 an ounce in the previous session, its highest level since September 21.

* US gold futures were stable at $ 1,926.40 an ounce.

* “We’ve been seeing a modest rebound in the dollar,” said Michael Hewson, chief markets analyst at CMC Markets UK. “Anyway, I think we need to buy when it goes down a bit more because the prospect of more fiscal stimulus after the US election is supporting gold higher.”

* The dollar index added 0.1%, moving away from a three-week low that fell in the previous session. A stronger dollar tends to negatively affect gold prices because it makes the metal more expensive for investors with other currencies.

* Gold, which has gained more than 27% so far this year, often benefits from fiscal stimulus spending because it is seen as a hedge against inflationary risks and weakening currencies.

* The government of President Donald Trump called on the United States Congress on Sunday to pass a coronavirus aid law using the remaining funds from a business loan program that has already expired, after discussions about a comprehensive stimulus plan they encountered more resistance.

* Among other precious metals, silver was down 0.4% at $ 25.03 an ounce; platinum fell 0.6% to $ 880.50; and palladium was down 0.2% at $ 2,434.52.

(Edited in Spanish by Marion Giraldo)

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