Gold Consolidates Just Below $1,900
Gold was trading lower on Thursday due to the dollar’s strength and falling stock markets worldwide. Investors are waiting for news on Brexit, US stimulus, and clarity on the presidential election.
The dollar traded higher on Thursday amid an atmosphere of risk aversion motivated by the increase in Europe’s coronavirus cases, the absence of agreement on a stimulus package in the United States, and a weak euro.
In that environment, the DXY jumped to a high since October 7 at 93.88. The dollar posted a 0.36 percent advance on the day. Craig Erlam, the OANDA analyst, stated that the dollar remains the preferred source of safe-haven flows, negatively affecting gold. More than a stimulus deal will be needed to generate bullish momentum that takes us through $2000 in gold.
Gold on the defensive
However, gold was trading negatively on Thursday. But it surpassed the daily lows of $1,889 and traded at 1,896.99, which was down 0.28 percent.
The XAU/USD maintained the support of 1.880, and although the dollar is advancing, the losses were not considerable. However, keep in mind that the support may break if there is no news on fiscal stimulus and the economic data in the United States continues to be mediocre.
In this environment, applications for unemployment benefits in the United States increased by 898 thousand initial applications during the week of October 9, above the 825 thousand expected by the market.
The previous week’s requests were revised up from the 840 thousand initially reported to the 845 thousand reported after the correction.
Covid-19 had no impact on the Yellow Metal production
Canadian gold miner Barrick Gold produced 1.16 million ounces of gold in the third quarter of the year. The accumulated total during the first nine months of the year amounts to 3.6 million ounces.
Barrick Gold, the world’s second-largest gold miner by production volume, has published a preview of its results for the third quarter of the year. It will be presented in the coming days by its CEO, Mark Bristow,. This will occur in a videoconference with journalists and analysts from all the world.
The preliminary figure for gold production in the third quarter of 2020 amounts to 1.16 million ounces. Which brings the total for the first nine months of the year to 3.6 million ounces.
According to the company, these figures are in line with the forecasts for the year as a whole, established in a range of between 4.6 and 5 million ounces. The data indicate that Covid-19 has had no impact on its annual production.
The average price of gold during the third quarter of the year was $1,909 an ounce.
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