Gold prices were steady on Thursday as renewed hopes for more U.S. stimulus kept the bullion afloat, with investors eyeing the weekly jobless claims data to further gauge the health of the world’s largest economy.
FUNDAMENTALS
Spot gold was little changed at $1,886.69 per ounce by 0100 GMT, having risen as much as 1.1% in the previous session.
U.S. gold futures were flat at $1,889.80.
The dollar index was steady against rivals after declining overnight.
U.S. Federal Reserve policymakers split over how to apply a new strategy for monetary policy at their September meeting, and, amid growing doubts about the path of the economy, offered no clear sense of their next steps to offset the coronavirus recession, minutes from their September meeting showed.
Top White House officials on Wednesday downplayed the possibility of more coronavirus relief, while House Speaker Nancy Pelosi disparaged U.S. President Donald Trump for backing away from talks on a comprehensive deal.
However, after having shut down the deal’s negotiations on Tuesday, Trump wrote on Twitter that Congress should pass money for airlines, small businesses, and stimulus checks of $1,200 for individuals.
Gold tends to benefit from widespread stimulus measures as it is widely viewed as a hedge against inflation and currency debasement.
Britain said on Wednesday there was a 66% chance of a Brexit trade deal but sought to use Prime Minister Boris Johnson’s deadline of Oct. 15 to hurry the bloc’s negotiators towards an agreement.
Asian shares were set to follow Wall Street gains on renewed hopes for more U.S. stimulus.
Silver was steady at $23.83 per ounce, platinum was up 0.1% at $865.21, while palladium was flat at $2,352.18.
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