Bulletin
Investor Alert

Metals Stocks Archives | Email alerts

Oct. 19, 2020, 2:17 p.m. EDT

Gold prices end higher as investors focus on talks on coronavirus relief

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Barrick Gold Corp. (GOLD)
  • X
    Gold Dec 2020 (GCZ20)
  • X
    Silver Continuous Contract (SI00)

or Cancel Already have a watchlist? Log In

By Myra P. Saefong and Mark DeCambre

Gold prices on Monday ended higher to start the week, with talk of a last-ditch effort to strike a deal by U.S. lawmakers on a fresh round of fiscal relief before the 2020 presidential elections helping to drive buying appetite, experts said.

See : Here’s why the prospect of a Democratic clean sweep in November’s elections is rattling a sleepy U.S. bond market

A weaker dollar also provided support for bullion because weakness for the buck can draw interest in gold from buyers using currencies that are relatively weaker than the buck.

With fresh hope for a U.S. stimulus, positive vaccine news from the UK and noted weakness in the dollar, the “path of least resistance in the gold and silver markets is pointing upward,” said analysts at Zaner Metals in a Monday note.

“Furthermore, gold and silver should draft support from favorable Chinese economic news which showed better-than-expected retail sales and an overall growth level commensurate with pre-Covid-19 levels,” they said.

Against that backdrop, December gold /zigman2/quotes/201432642/composite GOLD +0.18% /zigman2/quotes/210039572/delayed GCZ20 +0.17% rose $5.30, or 0.3%, to settle at $1,911.70 an ounce, after bullion posted a 1% weekly decline on Friday, based on the most-active contract, according to FactSet data.

Silver for December delivery /zigman2/quotes/210315219/delayed SI00 -0.24% /zigman2/quotes/210319381/delayed SIZ20 -0.24% , meanwhile, added 29 cents, or 1.2%, to reach $24.698 an ounce, following a weekly slide of 2.8%.

Investors have been attuned to the back-and-forth negotiations between House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin on a new round of funds for American businesses and workers hard hit by the economic weakness caused by the COVID-19 pandemic.

Pelosi spoke on Saturday with Mnuchin, according to reports, but appeared to suggest that a deal before the 2020 presidential election, between President Donald Trump and Democratic challenger and former Vice President Joe Biden, was unlikely to be achieved if a fiscal deal isn’t struck soon.

Additional relief, should it come, is viewed as bullish for gold which is being used by some as a hedge against governments dialing up spending and lowering interest rates to combat the pandemic that has seen more than 40 million people infected across the globe, according to data aggregated by Johns Hopkins University.

Meanwhile, China’s gross domestic product on Monday was seen expanding by 4.9% in the third quarter from a year earlier, below economists’ average estimates but above levels the nation saw before the viral outbreak took hold late in 2019.

China is one of the world’s biggest importers of commodities and an avid buyer of precious metals like gold.

Meanwhile, weakness in the dollar was providing an added boost to dollar-priced silver and gold. The dollar on Monday was down 0.4% on Monday at 93.315, as gauged by the ICE U.S. Dollar Index /zigman2/quotes/210598269/delayed DXY +0.03% .

Among other metals traded on Comex, December copper /zigman2/quotes/210059538/delayed HGZ20 +0.98% settled at $3.086 a pound, up 0.6%. January platinum /zigman2/quotes/214899298/delayed PLF21 -0.10% fell by 0.7% to $863.50 an ounce, while December palladium /zigman2/quotes/214428583/delayed PAZ20 +1.76% tacked on about 0.7% to $2,357.50 an ounce.

/zigman2/quotes/201432642/composite
US : U.S.: NYSE
$ 22.83
+0.04 +0.18%
Volume: 36.96M
Nov. 25, 2020 7:00p
P/E Ratio
13.41
Dividend Yield
1.36%
Market Cap
$40.72 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210039572/delayed
US : U.S.: Nymex
$ 1,808.60
+3.10 +0.17%
Volume: 47,792
Nov. 26, 2020 1:27p
loading...
/zigman2/quotes/210315219/delayed
US : U.S.: Nymex
$ 23.31
-0.06 -0.24%
Volume: 10,889
Nov. 26, 2020 12:59p
loading...
/zigman2/quotes/210319381/delayed
US : U.S.: Nymex
$ 23.31
-0.06 -0.24%
Volume: 10,889
Nov. 26, 2020 12:59p
loading...
/zigman2/quotes/210598269/delayed
US : U.S.: ICE Futures U.S.
92.02
+0.03 +0.03%
Volume: 0.00
Nov. 26, 2020 3:21p
loading...
/zigman2/quotes/210059538/delayed
US : U.S.: Nymex
$ 3.34
+0.03 +0.98%
Volume: 9,833
Nov. 26, 2020 3:09p
loading...
/zigman2/quotes/214899298/delayed
US : U.S.: Nymex
$ 968.80
-1.00 -0.10%
Volume: 3,568
Nov. 26, 2020 1:46p
loading...
/zigman2/quotes/214428583/delayed
US : U.S.: Nymex
$ 2,383.80
+41.20 +1.76%
Volume: 354.00
Nov. 26, 2020 12:53p
loading...

This Story has 0 Comments
Be the first to comment
More News In
Investing

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.