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Gold positive aspects on weaker greenback, virus woes forward of US election

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Gold firmed above $1,900 an oz on Friday, en path to a weekly acquire, because the greenback weakened and as traders hedged towards uncertainties surrounding the coronavirus pandemic and going into the Nov. Three U.S. presidential election.

Spot gold rose 0.3% to $1,909.10 per ounce by 0946 GMT and was up 0.5% for the week. U.S. gold futures gained 0.4% to $1,912.

“Gold is getting some boost from the dollar weakening and we have the U.S. elections and there’s still a lot of uncertainty. Also, there are talks about the U.S. stimulus package in negotiation,” mentioned Bank of China International analyst Xiao Fu.

The greenback index fell 0.2% towards its rivals, making dollar-denominated gold inexpensive for holders of different currencies.

House Speaker Nancy Pelosi on Thursday reported progress in talks with the Trump administration for an additional spherical of fiscal support and a deal might be reached “pretty soon”.

Even as soon as the U.S. election outcomes had been identified, “there still could be uncertainty about policies and implementation running until the end of the year, in turn supporting gold”, Bank of China International’s Fu mentioned.

There may be further inflows into gold trade traded funds – typically a gauge of investor sentiment – on renewed uncertainties over pandemic-related restrictions and the U.S. election consequence, UBS analysts mentioned in a notice.

The last debate between U.S. President Donald Trump and his Democratic challenger Joe Biden included contrasting views on the pandemic.

Countries throughout Europe carried out recent restrictions as coronavirus instances greater than doubled during the last 10 days, whereas the worldwide tally touched about 41,178,000.

Silver fell 0.2% to $24.70 per ounce, however was set for a weekly rise. Platinum rose 0.2% to $886.50 and palladium was flat at $2,372.99.

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