Gold futures moved higher on Wednesday, and was set to recoup nearly half of the loss from a day earlier when bullion sank below a psychologically significant level at $1,900 an ounce.
“We are just waiting for a clear cut catalyst and yes, the dollar and any updates on the stimulus negotiations [have] the biggest influence on the price as of now,” said James Hatzigiannis, chief market strategist at Ploutus Capital Advisors.
The U.S. dollar continued to trade lower after the better-than-expected U.S. producer-price index number. The PPI jumped 0.4% last month
Weakness in the currency provided support for dollar-denominated gold prices. The ICE U.S. Dollar Index DXY traded down 0.3% in Wednesday dealings.
The dollar also saw pressure in the wake of comments from Federal Reserve Vice Chairman Richard Clarida
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was up $13.20, or 0.7%, at $1,907.80 an ounce, a day after tumbling 1.8% on Tuesday.
Silver for December delivery
meanwhile, gained 26 cents, or 1%, at $24.39 an ounce, following a 4.5% skid for gold’s sister metal in the previous session.
Gold enthusiasts point to uncertainties around the 2020 presidential race between President Donald Trump and former Vice President Joe Biden and a lack of clarity around the prospects for economic growth amid the viral outbreak as factors that have buttressed gold prices despite steep periodic drawdowns.
“The approaching U.S. presidential election and doubts of any new U.S. stimulus package for Americans before the end of the year are also unknowns that have paused the stock indexes at mid-week,” wrote Jim Wyckoff, senior analyst at Kitco.com.