Gold retreats from three-week high on stronger dollar

By Eileen Soreng

(Reuters) – Gold fell back from a three-week high on Monday as the dollar firmed, although hopes for a new U.S. coronavirus aid package checked the precious metal’s losses.

Spot gold slipped 0.1% to $1,928.06 per ounce by 0329 GMT, after hitting its highest level since Sept. 21 at $1,932.96 earlier in the session. U.S. gold futures were up 0.4% at $1,934.10.

“The dollar index has rebounded slightly, weighing on the precious metal,” said Margaret Yang, a strategist with DailyFx, which covers currency, commodity and index trading.

But, “the technical trend has turned bullish in the near term and very soon it may test the key resistance level of $1,942,” she added.

The dollar index was up 0.1% against rivals, after negotiation on the U.S. stimulus package ran into resistance and as the yuan dropped after China’s central bank took a measure seen as aimed at curbing

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