Gold jumps 1% on uncertainty over recovery, U.S. elections
· Gold rose nearly 1% on Wednesday, bouncing back from early losses and a near 2% drop in the previous session, lifted by renewed fears over an economic recovery and uncertainty around the U.S. presidential election.
· The announcement bolstered the U.S. dollar and dragged down gold, which is widely viewed as a hedge against inflation and currency debasement.
· Spot gold rose 1% to $1,895.46 per ounce by 0727 GMT.
· U.S. gold futures were down 0.4% at $1,901.60.
· “Gold, (in the) longer term, is still bullish” and is likely to continue the uptrend following the correction, said Brian Lan, managing director at dealer GoldSilver Central in Singapore, adding that the drop below $1,900 prompted some short-covering.
· Trump later asked the Congress to extend $25 billion in new payroll assistance to U.S. passenger airlines.
· “Europe appears to be looking at things differently and scooping up gold on what seems to be a material dip in prices,” said Jeffrey Halley, a senior market analyst at OANDA.
· Investors are also awaiting minutes from U.S. Federal Reserve’s Sept. 15-16 policy meeting due later in the day.
· “Monetary policy is critical to where gold is going,” said DailyFx currency strategist Ilya Spivak, adding, the minutes might reinforce the idea that the Fed is not looking to do more stimulus in the immediate near term.
· The U.S. FDA released stringent guidelines for experimental coronavirus vaccines, delaying the availability of vaccine until after the presidential election.
· Silver climbed 2.8% to $23.74 per ounce, platinum was up 2.4% to $868.92, while palladium rose 0.6% to $2,354.11.
Reference: Financialpost
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