October 08, 2020
Gold holds steady on U.S. stimulus hopes, U.S. jobs data in focus
(Reuters) - Gold prices were little changed on Thursday as renewed hopes for more U.S. stimulus kept the bullion afloat, with investors eyeing the weekly jobless claims data to further gauge the health of the world’s largest economy.
Spot gold was steady at $1,884.64 per ounce , having risen as much as 1.1% in the previous session.
U.S. gold futures were down 0.2% at $1,887.70.
“Gold needs both fiscal and monetary policy to come into play,” said Edward Moya, a senior market analyst at OANDA.
“The virus’ spread is still strong in more states and also in Europe, and that is going to force policymakers and lawmakers to deliver more stimulus,” Moya said, adding that the metal is now in a wait-and-see mode.
After shutting down negotiations over a new stimulus deal, Trump wrote on Twitter that Congress should pass money for airlines, small businesses, and stimulus checks of $1,200 for individuals.
Meanwhile, minutes from the U.S. Federal Reserve’s September offered no clear sense of their next steps to offset the coronavirus recession. Many policymakers said their economic outlook assumed additional fiscal support.
Gold, seen as a hedge against inflation and currency debasement, has risen 24% this year, supported by massive government and central bank stimulus worldwide.
The dollar index was little changed against rivals after declining overnight, while Asian shares hit a one-month high.
“What the U.S. dollar does around investors’ risk appetite is going to dictate what gold does,” said ANZ analyst Daniel Hynes.
Investors now await U.S. employment data due later in the day. Jobless claims is predicted to decline, however, continued claims are likely to remain above 10 million.
Elsewhere, silver fell 0.3% to $23.78 per ounce, platinum dipped 0.5% to $859.92 per ounce, while palladium rose 0.2% to $2,357.02.