Gold hovers near one-week low after U.S. stimulus talks put on pause

Gold tends to benefit from widespread stimulus measures

  
Gold bars are seen in the Austrian Gold and Silver Separating Plant 'Oegussa' in Vienna, Austria, December 15, 2017.

Gold bars are seen in the Austrian Gold and Silver Separating Plant 'Oegussa' in Vienna, Austria, December 15, 2017.

REUTERS/Leonhard Foeger

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 GLD , 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.

(Reporting by Eileen Soreng in Bengaluru; Editing by Rashmi Aich) ((eileen.soreng@thomsonreuters.com; Within U.S. +1 646 223 8780, Outside U.S. +91 80 6749 6131; Reuters Messaging: eileen.soreng.thomsonreuters.com@reuters.net))

More From Commodities