Gold prices gain on weaker dollar, U.S. stimulus hopes

U.S. gold futures were steady at $1,916.40

  
Dubai Customs: AED67b airborne gold and diamonds trade from 1st March to 30th June. Image courtesy Dubai Media Office Twitter handle. Image used for illustrator purpose

Dubai Customs: AED67b airborne gold and diamonds trade from 1st March to 30th June. Image courtesy Dubai Media Office Twitter handle. Image used for illustrator purpose

Gold prices rose on Wednesday, propped up by a softer dollar and increasing hopes for a new U.S. coronavirus relief package ahead of the November elections.

FUNDAMENTALS

* Spot gold rose 0.3% to $1,912.11 per ounce by 0039 GMT.

* U.S. gold futures were steady at $1,916.40.

* The dollar index was down 0.1% against rivals.

* The White House and Democrats in the U.S. Congress moved closer to agreement on a fresh coronavirus aid as President Donald Trump said he was willing to accept a large aid bill despite opposition from his own Republican Party. 

* Gold is considered a hedge against inflation and currency debasement amid the unprecedented levels of global stimulus to ease the economic blow from the pandemic.

* The current rise in U.S. infections may not dent the recovery too much, Chicago Federal Reserve Bank President Charles Evans said, adding he remains "reasonably optimistic" unemployment will fall to 5.5% by the end of next year. 

* A frustrated European Union and piqued Britain both exhorted the other to compromise to avoid a fast-approaching disruptive finale to the five-year Brexit drama that would add to economic pain from the coronavirus crisis.

* Switzerland's gold exports to China and India dwindled in September, with the country instead importing record volumes of bullion from Hong Kong and sending metal to Britain, customs data showed. 

* Holdings in SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, fell 0.23% to 1,269.93 tonnes on Tuesday. 

* Silver gained 0.7% to $24.82 per ounce, platinum XPT= rose 0.3% to $873.89. Palladium was up 0.2% at $2,402.64.

(Reporting by Eileen Soreng in Bengaluru; editing by Uttaresh.V) ((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))

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