Gold prices gain as euro strength pressures the dollar

“The ECB has confirmed that there is no further need for additional help,” said Naeem Aslam, chief market analyst at AvaTrade, in a market update. “For traders, the ECB’s confidence in the Eurozone’s economy is a good thing and this is the reason that we have seen the EUR/USD moving higher.”

In Thursday trading, the euro EURUSD, 0.86%  traded at up 0.8% at $1.19, but that helped pull the ICE U.S. Dollar Index DXY, -0.47%  down by 0.5% to 92.802. A weaker dollar can provide support for assets priced in greenback, making them less expensive to overseas buyers.

December gold GCZ20, 0.85% GC00, 0.86% was up $18.60, or 1%, at $1,973.50 an ounce, following gains in each of the last two sessions.

December silver SIZ20, 1.87% SI00, 1.87% traded 54 cents, or 2%, higher at $27.62 an ounce after climbing 0.3% in the previous session.

In U.S. economic news Thursday, the number of American who applied for unemployment benefits through state and federal programs in the week ended Sept. 5 was unchanged at a seasonally adjusted 884,000, the Labor Department said. Still, continuing jobless claims, the number of people already receiving benefits rose by 93,000 to a seasonally adjusted 13.39 million in the seven days ended Aug. 29.

“The mixed bag of economic data confirms that there is gradual recovery for the U.S. economy,” said Aslam. “However, things are not improving and this is the reason that we are seeing improvement in the gold price. It is likely that the bottom is in for the gold price and it is likely to continue to move higher.”

Other metals traded on Comex also moved higher Thursday. December copper HGZ20, -0.02% traded at $3.0545 a pound, up 0.1%. October platinum PLV20, 1.85%  added 2% to $943.50 an ounce and December palladium PAZ20, +1.02%  climbed 1% to $2,342 an ounce.

Published: Sept. 10, 2020 at 10:25 a.m. ET