U.K. jobless rate rises to 4.8 pct in Q3 2020, labor market likely to deteriorate further in months ahead
Gold gains on U.S. stimulus hopes, markets eye U.S. unemployment benefit claims data
Gold prices rose, extending previous session gains amid renewed hopes for more U.S. stimulus, while investors awaited the weekly jobless claims data to further gauge the health of the U.S. economy.
Spot gold was trading 0.3 percent higher at $1,892.48 per ounce by 0923 GMT, having hit a high of $1921.27 on Tuesday, its highest since September 21. The safe-haven metal gained as much as 1.1 percent in the previous session. U.S. gold futures were up 0.2 percent at $1,894.75.
Investor risk sentiment improved after U.S. President Donald Trump said that he was ready to sign off on some stimulus measures. Trump said late on Tuesday that Congress should quickly extend $25 billion in new payroll assistance to U.S. passenger airlines furloughing thousands of workers as air travel remains down sharply amid the coronavirus pandemic.
The dollar declined against its rival currencies as markets looked ahead to a possible Democrat victory at the November 3 U.S. Presidential election. Election polls are showing a widening lead for Democratic presidential candidate Joe Biden. A Democratic win would make larger fiscal stimulus more likely, which would weaken the dollar.
The U.S. vice presidential debate did not move currency markets, but reinforced investors’ expectations on the policy settings that Trump or Biden administrations would hold.
The U.S. Federal Reserve's Sept. 15-16 meeting minutes released on Wednesday showed policymakers split over how to apply a new strategy for monetary policy amid growing doubts about the path of the economy, offering no clear sense of their next steps to offset the coronavirus recession.
The greenback against a basket of currencies traded 0.05 percent down at 93.58, having touched a low of 93.34 on Tuesday, its lowest since September 21. The U.S. Treasury yields declined, with the benchmark 10-year note yield trading at 0.770 percent and the 30-year yield at 1.564 percent.
Investors now await U.S. employment data due later in the day. Jobless claims is expected to decline, however, continued claims are likely to remain above 10 million.