(Adds analyst comments, updates prices)
* Gold to trend sideways between $1,800 and $1,850 -analyst
* Dollar holds close to nearly three-month lows
* GRAPHIC-Have vaccines killed the gold rally?
* Interactive graphic tracking global spread of coronavirus:
open
* tmsnrt.rs/3aIRuz7 in an external browser
By Asha Sistla
Nov 26 (Reuters) – Gold gained on Thursday on a softer
dollar and as the focus returned to the mounting number of
coronavirus cases and their economic toll, raising investor
expectations of further fiscal and monetary support.
Spot gold rose 0.5% to $1,813.40 per ounce by 1002
GMT. U.S. gold futures were up 0.4% to $1,812.10.
“We’ve had a relatively soft dollar and it hasn’t given that
much of a lift to gold during the decline. Now it’s giving a
little bit of a tailwind, giving it a lift back towards $1,860,”
said independent analyst Ross Norman.
“(Gold) has found its floor and there’s some evidence of
good buying at these lower levels. The lower price has
stimulated good physical buying in the (Asian) markets.”
The dollar index held close to nearly three-month
lows, increasing gold’s appeal for other currency holders.
Meanwhile, an extension of coronavirus restrictions in Germany
and a weak growth forecast for Britain kept European shares
flat.
Trading was expected to be thinned by the U.S. Thanksgiving
holiday.
U.S. Federal Reserve policymakers discussed how the central
bank’s asset purchases could be adjusted to provide more support
for markets in the minutes to its Nov. 4-5 meeting.
“Persistently high numbers of new corona cases and extended
lockdowns in many countries are increasing the need for further
support in the form of monetary and fiscal policy. A vaccine
will offer no quick-fix in that sense,” said Commerzbank analyst
Carsten Fritsch in a note.
“New stimulus measures are therefore likely to be set in
motion in the near future, which should benefit gold. In this
environment, gold is initially likely to trend sideways in a
corridor of between $1,800 and $1,850.
Gold is considered a hedge against inflation likely to
result from large stimulus.
Silver was up 0.2% to $23.35 an ounce, palladium
rose 1.8% to $2,371.53, while platinum fell 0.3%
to $960.40.
(Reporting by Asha Sistla in Bengaluru; editing by Barbara
Lewis)read more
PRECIOUS-Gold rises on soft dollar, stimulus bets as virus risks grow – Reuters UK
