Gold prices inched lower on Thursday, as a firmer dollar and progress in COVID-19 vaccine developments offset concerns over spiking virus cases in the United States and hopes of more stimulus.
Spot gold fell 0.21 % to $1,867.43 per ounce by 418 GMT, while U.S. gold futures were down 0.4% at $1,866.60.
After falling for five straight sessions, the dollar index was up 0.2%, making gold expensive for holders of other currencies.
“The focus here is fiscal stimulus… If somehow there is a sizeable stimulus package that is able to get passed, we may get gold higher, but the limiting factor would be a rise in yields,” said DailyFx currency strategist Ilya Spivak.
“Dollar strength is a major headwind for gold.”
U.S. President-elect Joe Biden expressed hope on Wednesday that Republicans in the Congress would be more inclined to move forward on COVID-19 relief legislation after President Donald Trump leaves office in January.
Gold, which tends to benefit from stimulus measures from central banks as it is considered a hedge against inflation and currency debasement, has gained about 23% this year.
However, prices are on track for the second week of declines.
COVID-19 vaccines from Pfizer Inc and Moderna Inc could be ready for U.S. authorization and distribution within weeks, setting the stage for inoculation to begin as soon as this year, U.S. Health and Human Services Secretary Alex Azar said on Wednesday.
“Gold has the potential to take out support $1,850-$1,860 in the coming days and once that happens we will be looking at $1,750-$1,760 next,” Ilya said.
Investors are also awaiting U.S. jobs figures due at 1330 GMT to discern the health of the economy.
Silver fell 0.5% to $24.20 per ounce. Platinum eased 0.5% $938.09, while palladium was down 0.3% at $2,322.53.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor
Read all the Latest News, Breaking News and Coronavirus News here
Comments
0 comment