Gold Market Investors : Gold prices were steady on Friday as investors waited for developments around a U.S. stimulus package, although the metal was on course to post a weekly and monthly decline hurt by a stronger dollar.
FUNDAMENTALS REPORTS
- Spot gold was unchanged at $1,840.91 per ounce by 0058 GMT. Prices were down 0.6% for the week and 2.9% for the month. U.S. gold futures rose 0.1% to $1,839.70.
- U.S. jobless claims fell in the latest week, while fourth-quarter gross domestic product figures met expectations.
- The International Monetary Fund urged that fiscal support should stay in place until an economic recovery is firmly underway even as global debt likely reached 98% at the end of 2020.
- Global gold demand for gold fell to its lowest in 11 years in 2020, while India’s consumption fell to its lowest in 26 years, the World Gold Council said on Thursday.
Gold Market Investors - Silver dropped 0.7% to $26.18 an ounce, having risen 4.5% on Thursday, after some traders moved to cover short positions on rumours about a GameStop-style squeeze driven by retail investors.
- What is US stimulus package? : A $1.9 trillion U.S. coronavirus stimulus deal proposed by President Joe Biden is yet to be passed.
- Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust fell 0.4% on Thursday.
- The greenback has risen 0.8% for the month helped by higher U.S. Treasury yields. Higher yields on bonds make gold a less attractive investment because it pays no interest.
- The dollar rose 0.2%, making gold expensive for holders of other currencies.
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