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Published on 21/09/2020 8:41:16 AM | Source: Reuters

Gold firms as weaker dollar lends support

Posted in Commodity Top News| #Gold #Commodity

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By Eileen Soreng

 Gold prices edged higher on Monday, helped by a weaker dollar while investors looked forward to speeches by Federal Reserve policymakers due this week for further clues on the U.S. central bank's approach to inflation.

Spot gold rose 0.2% to $1,952.59 per ounce by 0530 GMT.

U.S. gold futures inched 0.1% lower to $1,959.40.

The dollar index eased 0.2% against its rivals, making gold more attractive for buyers holding other currencies.

Investors are now awaiting speeches by Fed committee members, including Chairman Jerome Powell, who will appear before Congressional committees later this week.

"The focus on Jerome Powell will be how much he is going to try to sway the Senate to provide more stimulus," said Stephen Innes, chief market strategist at AxiCorp.

More stimulus in the United States could lead to a weaker dollar and that would be positive for gold, he added.

Gold has surged about 29% this year as governments and central banks worldwide released unprecedented stimulus measures to revive their coronavirus-battered economies.

Gold "remains in a range-trading mode, with resistance at $1,975.00 and support at $1,935.00," Jeffrey Halley, a senior market analyst at OANDA, said in a note.

Also supporting gold prices were concerns over a resurgence of COVID-19 cases globally that prompted major cities from Denmark to Greece to announce restrictions again.

Gold, however, could struggle to reach $2,000 again this year because of improving economic conditions and benefits of a likely COVID-19 vaccine coming into play, AxiCorp's Innes added.

Meanwhile, data from the Commodities Futures Trading Commission showed that speculators raised their net long position in COMEX gold by 10,622 contracts to 165,251 in the week ended Sept. 15.

Among other precious metals, silver ticked up 0.1% to $26.79 per ounce, platinum gained 0.9% to $936.27 and palladium was 1.2% higher at $2,384.06.

 

(Reporting by Eileen Soreng in Bengaluru, Editing by Sherry Jacob-Phillips)