Gold Markets: Coronavirus, Donald Trump

A gold bar is wrapped in a financial newspaper. GSO Images | Getty Images Gold prices on Wednesday hovered near a one-week low hit in the previous session, after U.S. President Donald Trump halted new stimulus talks, bolstering the dollar. Fundamentals Spot gold was flat at $1,877.15 per ounce by […]

A gold bar is wrapped in a financial newspaper.

GSO Images | Getty Images

Gold prices on Wednesday hovered near a one-week low hit in the previous session, after U.S. President Donald Trump halted new stimulus talks, bolstering the dollar.

Fundamentals

Spot gold was flat at $1,877.15 per ounce by 0107 GMT. Prices fell 2% on Tuesday hitting a one-week low of $1,874.05.

U.S. gold futures were down 1.4% at $1,882.90.

The dollar index was up 0.2% against rivals.

Prospects for more aid for Americans struggling through the Covid-19 pandemic and U.S. airlines seeking to avert a wave of layoffs crumbled on Tuesday when Trump ended negotiations until after the November election.

Gold tends to benefit from widespread stimulus measures as it is widely viewed as a hedge against inflation and currency debasement.

Top U.S. and European central bankers on Tuesday called for renewed government spending to support families and businesses as the battle against the coronavirus-triggered recession enters a newly critical phase.

The U.S. trade deficit surged in August to the largest in 14 years with imports climbing again, suggesting that trade could be a drag on economic growth in the third quarter.

Six U.S. states reported record numbers of hospitalized Covid-19 patients, prompting new restrictions, while worldwide cases have crossed 35.51 million.

Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.32% to 1,271.52 tonnes on Tuesday.

India’s gold imports in September fell 59% from a year earlier to the lowest level in four months, a government source said on Tuesday.

Silver rose 0.7% to $23.25 per ounce, platinum was up 1% at $856.51, while palladium dipped 0.1% to $2,339.81.

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