Gold Futures Settle Higher As The Dollar Eases

Gold prices moved higher on Monday as the dollar exhibited weakness as traders hoped the U.S. lawmakers will agree on a stimulus bill before the upcoming presidential elections.

Recent positive data on retail sales from China helped as well. Meanwhile, Chinese economy grew in the third quarter, although the pace of growth was lower than expected.

The dollar index slid to a low of 93.21 and subsequently recovered to 93.33, still languishing in negative territory, trailing its previous close by nearly 0.4%.

Gold futures for December ended up $5.30 or about 0.3% at $1,911.70 an ounce.

Silver futures for December closed with a gain of $0.293 or 1.2% at $24.698 an ounce, while Copper futures for December ended higher by $0.0165 or 0.6% at $3.0860 per pound.

In economic news, homebuilder confidence in the U.S. climbed to another new record high in the month of October, according to a report released by the National Association of Home Builders.

The report said the NAHB/Wells Fargo Housing Market Index rose to 85 in October from 83 in September. Economists had expected the index to come in unchanged.

China’s gross domestic product was up 4.9% on year in the third quarter of 2020, the National Bureau of Statistics said on Monday – missing forecasts for a gain of 5.2% but still up from 3.2% in the three months prior.

On a quarterly basis, GDP rose 2.7% – again shy of expectations for 3.2% and down sharply from the 11.5% gain in the previous three months.

The bureau also said that industrial production jumped 6.9% on year in September – beating forecasts for a gain of 5.8% and up from 5.6% in August.

On the stimulus front, house Speaker Nancy Pelosi said on Sunday differences remain with President Donald Trump’s administration on a wide-ranging coronavirus relief package but she was optimistic legislation could be pushed before the Nov.3 election.

President Trump said he would be open to a stimulus package bigger than the $2.2 trillion proposed by Democrats.

“I want a “bigger number” than Pelosi. “That doesn’t mean all the Republicans agree with me but I think they will in the end,” Trump said.

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