Gold is Stable on Hopes for a Strong US Dollar Stimulus

Gold stabilized on Friday, as expectations of an eventual US stimulus package were offset by the pressures imposed by the strong dollar.

There was no significant change in gold in immediate trading at 1903.36 dollars an ounce before the opening of European markets, after it had fallen more than one percent in the previous session.

US gold futures rose 0.01% to $ 1,905.80.

Gold, which is seen as a hedge against potential inflation, is up 0.3% for the week.

The dollar index rose 0.1% against a basket of major currencies, which increases the cost of gold to holders of other currencies.

The market’s focus now turns to the US presidential election on Nov.3 after US President Donald Trump and his Democratic rival, Joe Biden, presented sharply contrasting views on the pandemic in the final presidential debate on Thursday.

As for the other precious metals, silver fell 0.9% to $ 24.54 an ounce, but it is heading for a weekly increase of 1.5%. Platinum fell 0.3% to $ 882.40 and palladium rose 0.6% to $ 2,387.02.