Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Commodities  >  Gold       XAUUSD

GOLD

SummaryQuotesChartsNews 
SummaryAll NewsMarketScreener Strategies

Gold gains on weaker dollar, all eyes on Fed meeting

share with twitter share with LinkedIn share with facebook
09/14/2020 | 03:33am EDT
FILE PHOTO: Gold bars at the Austrian Gold and Silver Separating Plant 'Oegussa' in Vienna

Gold prices rose on Monday supported by a weaker dollar, while investors looked forward to the U.S. Federal Reserve policy meeting later this week for more cues on stimulus measures and inflation target.

Spot gold was up 0.2% at $1,944.69 per ounce by 0647 GMT. U.S. gold futures rose 0.3% to $1,953.20.

"The gold market is leaning towards the Fed's (policy)," said Stephen Innes, chief market strategist at AxiCorp, adding that the U.S. central bank might not change the current narrative, but there is a strong belief in the market that it would be able to trigger inflation.

The lower interest rate environment and long-term expectations that the Fed is going to increase quantitative easing and weaken the dollar are supporting gold prices, he added.

The dollar index eased 0.2% against its rivals, with focus on the Fed's policy announcement on Wednesday. A weaker dollar makes gold less expensive for holders of other currencies.

Market participants are also waiting for the Bank of Japan and the Bank of England's policy decisions, due on Thursday.

Major central banks have rolled out unprecedented stimulus measures and kept interest rates low, driving gold to new highs because of its role as a hedge against inflation and currency debasement.

The European Central Bank's president, Christine Lagarde, said euro zone governments must keep spending heavily to aid the bloc's recovery from its historic pandemic-induced recession, complementing already super-easy monetary policy.

"Gold's bullish longer-term fundamentals have not changed," Jeffrey Halley, a senior market analyst at OANDA, said in a note. "Gold has well-denoted support between $1,900 and $1,920 an ounce, with trendline resistance at $1,970."

Limiting gold's advance, investors' appetite for riskier assets increased as hopes for a potential COVID-19 vaccine resurfaced after AstraZeneca resumed its phase-3 trial.

Silver gained 0.3% to $26.82 per ounce, platinum jumped 1.3% to $936.91, while palladium fell 0.5% to $2,309.14.

(Reporting by Brijesh Patel in Bengaluru; Editing by Uttaresh.V and Rashmi Aich)

By Brijesh Patel

Stocks mentioned in the article
ChangeLast1st jan.
ASTRAZENECA PLC 0.26% 8479 Delayed Quote.11.17%
EURO / US DOLLAR (EUR/USD) 0.18% 1.1745 Delayed Quote.4.71%
GOLD 0.95% 1905.6 Delayed Quote.25.01%
PALLADIUM 0.22% 2323.5 Delayed Quote.19.80%
SILVER 1.87% 23.7815 Delayed Quote.36.05%
THE PLATINUM GROUP PUBLIC COMPANY LIMITED 0.00% 2.26 End-of-day quote.-44.61%
share with twitter share with LinkedIn share with facebook
All news about GOLD
05:13pUtilities Up As Investors Hedge On Economic Stimulus, September Jobs Report -..
DJ
04:56pMaterials Down Amid Stimulus Doubts -- Materials Roundup
DJ
04:26pStimulus hopes lead markets into tough fourth quarter
RE
04:23pStimulus hopes lead markets into tough fourth quarter
RE
12:49pStimulus hopes ease markets into eventful fourth quarter
RE
11:44aCoal baron Murray seeks U.S. benefits to treat his black lung disease - repor..
RE
10:47aGold jumps 1% on stimulus hopes, sombre dollar
RE
05:39aAustralian state defers Adani coal mine royalties ahead of election
RE
09/30Gold set for worst month in nearly 4 years on dollar bounce-back
RE
09/30China's Shandong Gold to buy Xinjiang-focused miner Hengxing
RE
More news
Chart GOLD
Duration : Period :
Gold Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends GOLD
Short TermMid-TermLong Term
TrendsBearishNeutralBullish