(Adds comments, updates prices)
* Vaccine optimism steers Asian equities to record highs
* Stronger dollar could push gold to $1,790-$1,800/OZ –
* Interactive graphic tracking global spread of coronavirus:
* https://tmsnrt.rs/3aIRuz7 in an external browser
By Nakul Iyer
Nov 23 (Reuters) – Gold edged higher on Monday, as a softer
dollar and hopes of further U.S. monetary stimulus offset
optimism over the quick rollout of a COVID-19 vaccine and
bolstered the precious metal’s appeal.
Spot gold rose 0.1% to $1,872.76 per ounce by 0327
GMT and U.S. gold futures were little changed at
U.S. Treasury Secretary Steven Mnuchin on Friday reassured
markets that the Fed and Treasury had many tools left to support
the economy, after deciding to de-fund several Federal Reserve
lending programs by the end of the year.
“Ironically, failure to deliver a fiscal package is
supportive for gold,” said Michael McCarthy, chief strategist at
CMC Markets, adding there might be more reliance on Fed support,
which will take the form of liquidity and lower interest rates.
Non-yielding gold is often seen as a hedge against inflation
that is likely to result from stimulus measures.
Novel coronavirus cases crossed 12 million over the weekend
in the United States, while rising cases in Germany fuelled
worries over an extended lockdown.
Also lending support to bullion was a softer U.S. dollar
that reduced the cost of purchasing it to other currency
While interest rates are likely to remain low and the
dollar weaker next year, investors may be less inclined to chase
prices higher and patiently wait for buying the dips
opportunities, Avtar Sandu, senior commodities manager at
Phillip Futures, said in a note.
Meanwhile, a broad gauge of Asian shares touched record
highs buoyed by vaccine hopes.
Though gold has found support near $1,875, a technical
level, there are downside risks from a potentially stronger
dollar that could push the metal down to $1,800-$1,790, CMC
Markets’ McCarthy said.
Silver firmed 0.4% to $24.25 an ounce. Platinum
rose 0.1% to $946.75, while palladium was up 0.4%
Keywords: GLOBAL PRECIOUS/ (UPDATE 1)
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