Gold retreats as dollar gains, U.S. stimulus hopes wane

Gold retreats as dollar gains, U.S. stimulus hopes wane

22 Oct 2020 10:48 AM

Gold slipped on Thursday from a more than one-week high hit in the last session, as the dollar recovered some lost ground after doubts emerged whether an agreement on a new U.S. fiscal coronavirus aid package could be reached before the election.

Spot gold fell 0.6% to $1,913.45 per ounce by 09:13 am, after hitting its highest level since Oct. 12 at $1,931.01 on Wednesday. U.S. gold futures were down 0.7% to $1,916.00 per ounce.

Stimulus talks between U.S. lawmakers faced a setback on Wednesday when President Donald Trump accused Democrats of being unwilling to craft a compromise on aid, despite reports of some progress earlier in the day.

The news dented risk sentiment and lifted the dollar against its rivals, making gold more expensive for holders of other currencies.

Underscoring the need for additional fiscal support, U.S. Federal Reserve Governor Lael Brainard said the economic recovery is uneven and uncertain and will require continued support to ensure it becomes broad-based and sustainable.

Elsewhere, silver fell 1.1% to $24.79 per ounce, platinum dropped 0.2% to $884.56 and palladium was down 0.1% to $2,403.69.