SINGAPORE: Gold retreated slightly from a three-week high in Asian trade, as the dollar recouped some of its losses after a new US coronavirus aid package ran into resistance.
Spot gold fell 0.3% to $1,923.81 per ounce by 0737 GMT, after hitting its highest level since Sept. 21 at $1,932.96 earlier in the session. US gold futures were up 0.2% at $1,930.10.
"The dollar index has rebounded slightly, weighing on the precious metal," said Margaret Yang, a strategist with DailyFx, which covers currency, commodity and index trading.
But, "the technical trend has turned bullish in the near term and very soon it may test the key resistance level of $1,942," she added.
"There is going to be a stimulus coming really quickly after the election... The market will look through the fact that we don't have stimulus now but that it is coming and that will be supportive for gold," Stephen Innes, chief global market strategist at Axi.
Gold, considered a hedge against inflation and currency debasement, has gained over 26% so far this year, boosted by unprecedented stimulus measures unveiled globally to cushion the economic fallout from the Covid-19 pandemic.-Reuters
Comments
Comments are closed.