Gold Eases On US Aid Doubts, Stronger Dollar

Goldman Sachs forecast gold at $2,300 an ounce over a 12-month horizon and said commodities were likely headed for a bull market next year.

Gold Eases On US Aid Doubts, Stronger Dollar

US gold futures slipped 0.5% to $1,919.90 per ounce

Gold prices slipped on Thursday as market hopes for a US coronavirus aid package ahead of the presidential elections waned, in turn bolstering the dollar.

Spot gold fell 0.4 per cent to $1,917.19 per ounce by 0953 GMT (3:23 pm in India), after hitting more than a one-week high on Wednesday. US gold futures slipped 0.5 per cent to $1,919.90 per ounce.

Gold is tracking a gyrating dollar, with investors watching "whether a fiscal stimulus plan will be agreed before the election or will have to now wait because of the lack of time, until the next president has been voted in", said Robin Bhar, an independent analyst.

Prices are likely to trade sideways "until we know who the next president is," but could break above the $1,950 level post the elections, Mr Bhar added.

Widely viewed as a hedge against inflation and currency debasement, bullion has gained 26 per cent this year as central banks and governments globally unleash unprecedented stimulus measures to cushion the economic fallout from the pandemic.

Stimulus talks between US lawmakers faced a setback on Wednesday when President Donald Trump accused Democrats of being unwilling to craft a compromise on aid.

Newsbeep

The news dented risk sentiment and lifted the dollar against its rivals, making gold more expensive for holders of other currencies.

Investors now await the final US presidential debate between Mr Trump and Democrat rival Joe Biden on Thursday night ahead of the November 3 election, and also weekly jobless claims at 1230 GMT (6:00 pm).

Wall Street bank Goldman Sachs forecast gold at $2,300 an ounce over a 12-month horizon and said commodities were likely headed for a bull market next year.

Elsewhere, silver fell 1.2 per cent to $24.78, platinum eased 0.1 per cent to $885.75 and palladium dropped 0.9 per cent to $2,382.15.