Gold erases losses with dollar slumping, lockdowns widening

Gold erases losses with dollar slumping, lockdowns widening

Gold erased losses as a slumping dollar and widening lockdowns to curtail the coronavirus bolstered demand for the metal as a haven.

Bullion fell as much as 0.9 per cent earlier after Pfizer Inc. said it plans to apply for the first U.S. regulatory authorization for a coronavirus shot within days. Gold investors took advantage of the price decline, buying as the greenback extended losses and expectations mounted for further virus lockdowns.

The new Pfizer announcement “triggered a couple of waves of liquidation in gold to session lows, but buy programs are pushing it back up,” said Tai Wong, head of metal derivatives trading at BMO Capital Markets. “Gold seems to have found short-term equilibrium.”

Spot gold rose less than 0.1 per cent to US$1,880.70 an ounce at 11:59 a.m. in New York.The US$1,895-US$1,900 range is becoming an important short-term hurdle for gold, Wong said. Even with effective vaccines in the pipeline, […]

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