Gold steadies as post-U.S. shutdown rally peters out
21-Oct (Reuters) — Gold steadied on Monday, struggling to build on its biggest weekly rise in two months, as a rally sparked by expectations that the Federal Reserve will postpone tapering its monetary stimulus programme ran out of steam.
Gold climbed nearly 4 percent last week on expectations the Fed would have to maintain stimulus measures after a two-week government shutdown hurt growth expectations. But strong gains in other assets have dampened gold’s appeal to investors, while physical demand remains lacklustre.
…”The move last week was largely driven by short covering and renewed dollar weakness,” VTB Capital analyst Andrey Kryuchenkov said, adding “Buying had already dried up with little follow-through investment.”