Gold inches lower as dollar gains ground

Gold prices eased to an over one-week low on Monday in early Asia trade as the dollar firmed and talks over the new U.S. coronavirus aid package showed no signs of progress.


Spot gold fell 0.1% to $1,899.41 per ounce by 0053 GMT, after hitting $1,890.19, its lowest since Oct. 15.

U.S. gold futures were down 0.2% at $1,900.

The dollar index was up 0.1% against a basket of currencies.

U.S. House Speaker Nancy Pelosi said on Sunday the Trump administration was reviewing the latest plan for more COVID-19 relief over the weekend and that she expected a response on Monday, adding that she was still optimistic a deal could be reached.

U.S. reported 79,852 new infections on Saturday, close to the previous day’s record of 84,244 new cases. Hospitalizations are also rising and have hit a two-month high and deaths are trending upwards, according to a Reuters tally.

France registered record increase in infections over the weekend, while Spain announced a state of emergency as a second wave of cases surges through Europe.

Gold premiums in India jumped to their highest in nearly three months last week, as jewellers continued to stock up on hopes of more customers visiting stores as the festive season gathers pace.

Speculators increased their net long position by 15,488 contracts to 135,311 in week to Oct. 20 in COMEX gold, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.14% to 1,263.80 tonnes on Friday.

Silver fell 0.5% to $24.45 per ounce, while platinum dipped 0.7% to $895 and palladium eased 0.5% to $2,382.12.

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