PRECIOUS-Gold slips as dollar stems declines; election uncertainty caps losses

Reuters

Warning: This material has been prepared by a third party company, Reuters, which is independent of Davy. Davy has not reviewed the material and accepts no responsibility for errors or omissions, or for the information or opinions contained therein. It does not constitute investment advice.

 (Updates prices)
    * Silver up 1.5% this week
    * Dollar set to fall about 1% for the week
    * Interactive graphic tracking global spread of coronavirus:
https://graphics.reuters.com/world-coronavirus-tracker-and-maps/

    By Asha Sistla
    Oct 23 (Reuters) - Gold eased on Friday as the dollar
recouped some losses, but  uncertainty going into the Nov. 3
U.S. elections limited bullion's losses.  
    Spot gold  XAU=  fell 0.1% to $1,903.07 per ounce by 2:06
p.m. EDT (1806 GMT). U.S. gold futures  GCcv1  settled unchanged
at $1,905.20.
    "Gold's moves are really mirroring the dollar at this
point," said Tai Wong, head of base and precious metals
derivatives trading at BMO. Gold is in a "restive" $1,890-$1,930
range with any dips to the bottom being lapped up, he added.
    "The initial pop in gold (and slightly lower dollar) was due
to the results of the last presidential debate not likely to
make a difference in the election outcome, with (Democratic
candidate Joe) Biden comfortably ahead."
    Denting appeal for greenback-denominated bullion, the dollar
index  .DXY  pared some of its losses, but was set to decline
about 1% for the week.  USD/ 
    More than 50 million Americans have cast ballots with 11
days to go in the campaign.  urn:newsml:reuters.com:*:nL8N2HE4UL  urn:newsml:reuters.com:*:nL1N2HD0U2
    "Gold still remains stuck in its stimulus limbo range. 
Stimulus optimism faded after National Economic Council Director
(Larry) Kudlow noted that negotiations still have policy and
numerical disagreements," Edward Moya, senior market analyst at
OANDA, said in a note.
    Bullion has gained over 25% so far this year given its
status as an inflation hedge amid unprecedented pandemic-driven
stimulus across the world.
    "Gold's fate will be determined on Election Day, a blue wave
signals huge stimulus and hello $2,000, while a Biden victory
with the Republicans keeping the Senate suggests a slower grind
higher," Moya said.
    Kudlow said on Thursday talks on a possible aid deal were
ongoing but that larger policy differences with Democrats were
unlikely to be resolved with the election less than two weeks
away.  urn:newsml:reuters.com:*:nW1N2G500H  urn:newsml:reuters.com:*:nL1N2HD0KX 
    Silver  XAG=  dipped 0.8% to $24.55 per ounce but was set
for a weekly rise. Platinum  XPT=  gained 2% to $904.36 and
palladium  XPD=  rose 0.6% to $2,389.07.

 (Reporting by Arpan Varghese and Asha Sistla in Bengaluru;
editing by Jonathan Oatis, Richard Chang and Tom Brown)
 ((Asha.Sistla@thomsonreuters.com; If within U.S. +1 646 223
8780; outside U.S. +91 80 6182 2808; Reuters Messaging: Reuters
Messaging: asha.sistla.thomsonreuters.com@reuters.net))

Warning: This content may be provided by regulated and unregulated entities and is not created, reviewed or endorsed by Davy. It is provided for general information purposes only and does not constitute a recommendation or solicitation to purchase or sell any security or make any other type of investment or investment decision. Importantly, it does not constitute investment advice, as it does not contemplate the personal circumstances of any particular person or group of persons. Neither Davy nor the providers of the Third Party Content will be liable for any investment decision made based on the reliance on or use of such data, or any liability that may arise due to delays or interruptions in the delivery of the Third Party Content for any reason.