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Gold jumps 1% on greenback weak point, financial uncertainty

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Gold gained 1% on Wednesday, rebounding from a pointy decline within the earlier session, because the greenback weakened and uncertainties surrounding the U.S. election and international financial restoration boosted the protected haven steel’s attract.

Spot gold was up 1% to $1,910.06 per ounce by 9:54 a.m. EDT (1354 GMT). U.S. gold futures rose 1.1% to $1,914.70.

“The dollar index is down on the day, yields are lower which is supporting gold and we’re also seeing some technical buying probably because yesterday’s correction was a little overdone,” stated Bart Melek, head of commodity methods at TD Securities.

The greenback was down in opposition to main currencies, whereas the benchmark 10-year yield additionally fell.

Bullion dipped as a lot as 1.9% on Tuesday after the dollar rallied on an deadlock over U.S. stimulus.

“We’re going to get a stimulus no matter who wins the elections – Democrats or Republicans … the fact of the matter is the U.S. needs a stimulus package, although it looks doubtful that we’ll get one in any meaningful way before the elections,” Melek added.

Gold, thought of a hedge in opposition to inflation and forex debasement, has climbed 26% this yr amid the unprecedented ranges of world stimulus to ease the financial blow from the pandemic.

Investors additionally stored a watch on the U.S. presidential marketing campaign, with polls displaying Democratic candidate Joe Biden main the race.

“The $1,900 an ounce level has been a battle ground for gold,” stated Eli Tesfaye, senior market strategist at RJO Futures.

“The market has tried to take it below that level several times but the bears have been overcome by demand from the uncertainty in the upcoming U.S. elections, Brexit and stimulus.”

Elsewhere, silver rose 1.5% to $24.52 per ounce, platinum climbed 0.2% to $866.59 and palladium gained 1.7% to $2,355.13.

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