SINGAPORE: Gold prices steadied above the $1,900 mark in Asian trade on Wednesday as uncertainties about the US elections and surging global COVID-19 cases countered pressure from a firmer dollar and fading hopes of an immediate US stimulus package.
Spot gold was little changed at $1,909.20 per ounce by 0619 GMT. US gold futures were flat at $1,911.60.
“Investors need a reason to buy more gold and the reason to buy gold will come from a policy signal,” said Stephen Innes, chief global market strategist at Axi.
“Gold prices are being kept in check by the dollar index... Gold’s adherence to a tight range also indicates that some investors remain sceptical over the prospects of a ‘blue wave’,” said FXTM market analyst Han Tan.
On the technical front, spot gold may test a support at $1,887, as the bounce triggered by this support is ending around a resistance at $1,912, according to Reuters technical analyst Wang Tao.