PRECIOUS-Gold firms as dollar dips, coronavirus concerns grow

By Eileen Soreng

Oct 30 (Reuters) – Gold prices rose on Friday, as the dollar

retreated, supported by worries of soaring coronavirus cases in

the United States and Europe as well as uncertainty over the

upcoming U.S. presidential election.

Spot gold rose 0.5% to $1,875.76 per ounce by 357

GMT, but was on track for a third straight month of declines.

U.S. gold futures were up 0.5% at $1,877.

The dollar index fell 0.2% against a basket of

currencies, making bullion cheaper for holders of other

currencies.

"The dollar rebound appears to have run its course," said

Edward Moya, senior market analyst at OANDA.

"The virus spread is going to provide additional pressure on

the Congress to deliver more support… That's just going to

bolster the stimulus trade going forward."

The White House virus task force warned aggressive steps

will be needed to curb the outbreak, with the U.S. breaking its

single-day record for new infections on Thursday.

 

Europe has moved back to the centre of the global pandemic,

with Germany and France ordering a second lockdown to curb the

spread of infections.

"Leading into the U.S. elections I see it (gold) staying

weak," said Michael Langford, executive director at corporate

advisory and consultancy firm AirGuide.

"Regardless of whoever wins the election, there is going to

be some form of stimulus program and that's positive for gold."

Gold is up nearly 24% this year as unprecedented stimulus

measures globally boosted the precious metal's appeal as a hedge

against inflation and currency debasement.

The U.S. presidential election is set for Nov. 3 and opinion

polls show Democrat contender Joe Biden with a significant edge

nationally, but with a tighter lead in the battleground states

that play a decisive role in the final result.

Silver climbed 1% to $23.51 per ounce. Platinum

and palladium were up 1% at $855.77 and $2,213.71,

respectively.

David