by Myra P. Saefong and Mark DeCambre
Gold futures recovered early losses to finish with a modest gain Thursday, as traders favored the precious metal as a haven investment, despite a rise in the U.S. dollar, following the week’s decline in gold prices.
Gold turned higher, showing signs of “delinking” from the ICE U.S. Dollar Index DXY, Chintan Karnani, chief market analyst at Insignia Consultants, told MarketWatch. Europe’s struggle with the rise in COVID-19 cases and ongoing talks over Brexit worked to boost safe-haven demand for gold.
That outweighed earlier pressure from a rise in the dollar, which strengthened as the euro EURUSD, -0.03% and British pound GBPUSD, -0.09% both fell against the U.S. currencywith Europe focusing on Brexit talks and the coronavirus spread and lockdowns, said Karnani. A stronger greenback can make dollar-priced gold more expensive to overseas buyers.