* Fed’s Sept. 15-16 policy meeting minutes due at 1800 GMT
* Potential of no election result in Nov will help gold
Interactive graphic tracking global spread of coronavirus: https://graphics.reuters.com/world-coronavirus-tracker-and-maps/
(New throughout, adds comment, updates prices)
By Arundhati Sarkar
Oct 7 (Reuters) – Gold rose on Wednesday after concerns over
further U.S. stimulus to support the virus-hit economy waned,
with focus now on minutes from the U.S. Federal Reserve’s last
meeting for clues on the outlook of monetary policy.
Spot gold rose 0.4% to $1,884.46 per ounce by 10:34
am ET (1434 GMT). U.S. gold futures fell 1.3% to
$1,884.60 per ounce.
“President Trump’s retracement from “no stimulus
negotiation” to “unilateral relief measures” has helped support
gold prices despite the U.S. dollar only weakening slightly,”
said Jeff Klearman, portfolio manager at GraniteShares.
Gold prices had declined nearly 2% on Tuesday after U.S.
President Donald Trump announced a halt in additional stimulus
negotiations until after the Nov. 3 presidential election.
However, he later suggested new payroll assistance to U.S.
“Coronavirus-related demand destruction concerns are still
abound, meaning sooner or later, a fiscal stimulus package will
likely be passed and the Fed will continue its unprecedented
accommodative monetary policy,” Klearman said.
Investors now await minutes from Fed’s Sept. 15-16 policy
meeting at 1800 GMT. Fed Chair Jerome Powell on Tuesday called
for more help for businesses and households to keep a nascent
economic recovery from faltering.
“There is an anticipation about the level of inflation as a
result of stimulus … and that could be hedged by gold,” said
Jeffrey Sica, president and chief investment officer of Sica
He added “there will be a great potential of not having an
election result in November, which will help gold prices as a
flight to safety.”
Gold is seen as a safe-haven investment due to its ability
to retain value even at times of financial or political
uncertainty. It is also used as a hedge against inflation.
Elsewhere, silver climbed 2.7% to $23.70 per ounce,
platinum was up 0.9% to $856.15, while palladium
rose 0.9% to $2,362.41.
(Reporting by Arundhati Sarkar in Bengaluru; Editing by
twitter.com/Arundhati_05; +1 646 223 8780 Ext: 2776))
Keywords: GLOBAL PRECIOUS/ (UPDATE 5)
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