😎 Summer Sale Exclusive - Up to 50% off AI-powered stock picks by InvestingProCLAIM SALE

PRECIOUS-Gold rises on weaker dollar, stimulus hopes

Published 24-12-2020, 09:21 am
© Reuters.
XAU/USD
-
XAG/USD
-
GC
-
SI
-
PA
-
PL
-

(Updates prices)

* Markets optimistic U.S. coronavirus aid bill will be passed

* Dollar eases as pound, euro gain on Brexit hopes

* Gold may test resistance at $1,888/oz - technical analyst

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

By Nakul Iyer

Dec 24 (Reuters) - Gold prices edged up on Thursday as the dollar eased and investors bet on further U.S. stimulus though President Donald Trump threatened to veto a long-awaited pandemic relief bill.

Spot gold XAU= rose 0.2% to $1,875.20 per ounce by 0722 GMT, having risen as much as 1% in the previous session. U.S. gold futures GCv1 were up by 0.1% at $1,880.00.

"Gold prices are riding a near-term bull trend, propelled by a weaker dollar and a new strain of coronavirus that could derail the (economic) recovery, hinting at further stimulus ahead," said Margaret Yang, a strategist at DailyFX.

News that Britain and the European Union were on the cusp of striking a narrow trade deal lifted the euro and British pound, pushing the dollar down. USD/

The safe-haven metal also benefited from a more contagious coronavirus variant that prompted sweeping restrictions in Britain. overnight rally leaves gold parked in the middle of its one-week range, lacking the drivers and momentum to attempt a directional move either way," Jeffrey Halley, a senior market analyst at OANDA, said in a note.

Gold's next move will depend on whether the fiscal stimulus situation in the United States is resolved over the next week, he added.

Rising risks from the new virus variant and surging U.S. infections have kept investors optimistic about the U.S. stimulus bill despite Trump's threat to veto the $900 billion relief package. will move in tandem with COVID-19 developments next year, while U.S. President-elect Joe Biden's policy on the dollar and U.S.-China relations will also determine the metal's trajectory, DailyFX's Yang said.

The metal may test a resistance at $1,888 per ounce, a break above which could push it to $1,904, Reuters technical analyst Wang Tao said.

Silver XAG= climbed 0.6% to $25.68 an ounce. Platinum XPT= gained 0.5% to $1,019.59 and palladium XPD= rose 0.1% to $2,325.55.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.