Gold muted on firmer dollar, heads for worst week in over a month
· Gold prices lingered near the one-month low hit in the previous session on Friday, as the dollar strengthened and hopes of an immediate U.S. coronavirus aid package waned.
· Spot gold was flat at $1,870 per ounce by 0108 GMT and was on track to post its worst week in over a month.
· U.S. gold futures were down 0.1% at $1,866.20.
· The dollar index was steady near a one-month peak touched on Thursday and is on track for it best week since late September.
· President Donald Trump’s chief economic adviser said on Thursday that any deal on coronavirus relief legislation would have to wait for now.
· The U.S. economy grew at a historic pace in the third quarter as the government injected more than $3 trillion worth of pandemic relief which fueled consumer spending, but the effects of the Covid-19 recession is likely to linger for longer.
· The European Central Bank committed on Thursday to take new action in December to contain the growing fallout from a second wave of coronavirus infections, likely in the form of more bond purchases or cheap credit for banks.
· The discount of Chinese gold to international prices is expected to narrow in the fourth quarter as a recovery in the investment and wedding sectors boosts demand, a World Gold Council official said on Thursday.
· India’s gold demand fell 30%, but ‘cautious optimism’ may be returning
Gold demand in India fell 30% in the previous quarter, but a sense of “cautious optimism” has returned to the market, according to the World Gold Council.
· The precious metal, gold, has violated the double top resistance level at 1,884, and the closing of the candle below this level may drive further downward movement in the market. On the lower side, gold may face the next support at 1,863, and even lower, the XAU/USD could also lead it’s price towards 1,848. Conversely, the bullish breakout at the 1,884 level could send the gold prices up higher, towards 1,899 and 1,905.
· Silver rose 0.3% to $23.35 per ounce. Platinum was up 0.3% at $850.30 and palladium gained 0.4% at $2,199.64.
Reference: CNBC, FXleaders
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