· Gold flat as dollar strength checks concerns over virus case spike
· Gold prices were steady on Thursday, with the metal caught between a strengthening U.S. dollar and a pullback in global equities, as worries over new coronavirus cases delaying economic recovery weighed on markets.
Spot gold was flat at $1,725.90 per ounce by 0256 GMT. U.S. gold futures were nearly unchanged at $1,734.70.
· “We’re not really seeing a clear-cut catalyst for gold here. On the one hand, we’re getting a stronger U.S. dollar because the recent comments from the Federal Reserve are supportive,” said DailyFx currency strategist Ilya Spivak.
“On the other hand, the absence of more stimulus has weighed on the sentiment and bond yields have fallen. These conflicting influences are keeping gold pretty well anchored.”
· Safe-haven gains for the U.S. dollar weighed on gold’s appeal, with dollar index holding firm against a basket of major currencies.
· Fed Chair Jerome Powell said on Wednesday the U.S. economy is beginning to recover from the worst of the coronavirus crisis, but with some 25 million Americans displaced from work and the pandemic ongoing, it will need more help.
· The imposition of travel curbs in Beijing to stop a separate outbreak and surging new Covid-19 cases in several U.S. states erased earlier confidence about a global economic recovery, sending global financial markets and U.S. Treasury yields lower.
· Bank of England is expected to announce an increase of at least 100 billion pounds ($125 billion) in its bond-buying program at its policy meeting due 1100 GMT.
· Gold tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation and currency debasement.
· Elsewhere, palladium gained 0.7% to $1,934.36 per ounce, while platinum dropped 0.9% to $811.50 and silver slipped 0.8% to $17.43.
Reference: CNBC
Thai
Eng