PRECIOUS METALS-Gold heads for weekly decline on lower hopes for stimulus

0
0
PRECIOUS METALS-Gold heads for weekly decline on lower hopes for stimulus




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 16 (Reuters) – Gold stabilized on Friday as the dollar fell, but was still on track for its first weekly decline in the last three, as doubts about a possible stimulus deal ahead of the US presidential election reduced demand for the metal as a hedge against inflation.

* As of 0920 GMT, spot gold was up 0.1% at $ 1,909.53 an ounce, but was down more than 1% for the week. Gold futures in the United States were down 0.1% at $ 1,907.50 an ounce.

* “The lack of physical stimulus maybe until after the US election did cause some gold sell-off this week,” said Robin Bhar, an independent analyst. “Gold is attentive to what other markets are doing and does not have a catalyst to go up or down too much.”

* The dollar index, which compares the greenback with a basket of six prominent coins, was down 0.1%, but was heading for a weekly gain, making the bullion more expensive for holders of other currencies.

* US President Donald Trump said Thursday that he is willing to raise his $ 1.8 trillion offer to negotiate a relief deal with Democrats in Congress, but the idea was rejected by the leader of the Republican majority in the Senate, Mitch McConnell.

* “The administration’s hesitancy in Washington on the stimulus is putting a lot of volatility in our markets,” said Afshin Nabavi, senior vice president at precious metals trader MKS SA.

* “Gold is stuck in a range and we have to go above $ 1,950 or fall below $ 1,850 to have a new direction,” he added.

* In other precious metals, silver was up 0.3% to $ 24.37 an ounce on the session, but was down 3% on the week; platinum was down 0.5% at $ 859.44; and palladium fell 0.9% to $ 2,332.06.

(Edited in Spanish by Carlos Serrano)

LEAVE A REPLY

Please enter your comment!
Please enter your name here