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PRECIOUS-Gold slips as dollar firms, while investors await stimulus

Published 2020-12-18, 10:36 a/m
© Reuters.
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(Updates prices)

* Gold has gained about 2.2% so far this week

* Silver up 7.8% so for this week

* Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa

By Shreyansi Singh

Dec 18 (Reuters) - Gold prices slipped on Friday after three days of gains as the dollar's rebound offset support from hopes of a U.S. fiscal stimulus package.

Spot gold XAU= was down 0.3% at $1,880.11 per ounce by 2:44 p.m. ET (1944 GMT). U.S. gold futures GCv1 settled down 0.1% at $1,888.90.

With coronavirus infections roaring back to new record highs across the United States, pressure mounted on lawmakers to deliver more relief aid in time for a crucial Friday deadline. has attached itself entirely to the negotiations on the stimulus package. ... The market will rally if there's positive momentum towards reaching a stimulus deal, and if there's any indication of a delay gold pulls back," said Jeffrey Sica, founder of Circle Squared Alternative Investments.

"Once stimulus gets approved in its entirety, I anticipate gold will rally substantially because it's a massive stimulus package."

The precious metal was still up about 2.2% for the week and on track for a third straight weekly gain.

Banking on U.S. Federal Reserve's pledge to continue pouring cash into financial markets and keep interest rates low until the U.S. economic recovery is secure, gold hit a peak since Nov. 16 on Thursday. primary focus has been the expectations that we're going to get a stimulus deal," said Edward Moya, senior market analyst at OANDA.

"The Fed will remain accommodative, and the Congress is finally going to deliver some stimulus, and the current trajectory of the virus is going to warrant even more stimulus once the Biden administration takes over."

The dollar index .DXY rebounded from a more than two-year trough, making bullion more expensive for holders of other currencies. USD/

Silver XAG= fell 1% to $25.80 an ounce, but was up 7.8% so for this week.

Platinum XPT= was down 1.1% at $1,033.16, while palladium XPD= gained 1.2% to $2,369.42.

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