PRECIOUS-Gold dips as investors wary over U.S. stimulus delay
(Adds comments, details and updates prices)
* Platinum set for first weekly drop in four
* Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa
By Nakul Iyer
Dec 11 (Reuters) - Gold prices edged lower on Friday as investors grappled with uncertainty over additional U.S. stimulus package, offsetting support from a weaker dollar that lifted bullion's safe-haven appeal in early Asian trade.
Spot gold XAU= fell 0.1% to $1,833.70 per ounce by 0754 GMT. U.S. gold futures GCv1 were steady at $1,837.00.
Investors are unwinding their gold positions as stalled progress over a fiscal stimulus deal, which is seen as a catalyst, has reduced confidence, said Michael Langford, director at corporate advisory and consultancy AirGuide.
Gold is seen as a hedge against inflation and currency debasement. U.S. Senate vote on a stopgap measure is likely to extend to Friday's deadline, a leading Republican said, as a top Democrat suggested talks over COVID-19 stimulus package could drag on through Christmas. needs a very strong catalyst to break its descending trend and that could be in the form of a dovish Federal Reserve, a larger than expected U.S. fiscal stimulus bill or the unlikely failure of vaccines, said Margaret Yang, a strategist at DailyFX. limiting bullion's losses, the dollar index .DXY traded close to its lowest level since April 2018. USD/
Highlighting the pandemic's economic impact, data on Thursday showed that U.S. weekly jobless claims jumped to a near three-month high. on investors' radar were trade deal negotiations between the European Union and Britain, with UK Prime Minister Boris Johnson saying both parties could fail to reach a deal before the country leaves the bloc on Jan. 1. potential no-deal Brexit would incentivize investors to pick up the metal in pounds due to its likely depreciation, said Airguide's Langford.
Silver XAG= dropped 0.3% to $23.87 per ounce and palladium XPD= rose 0.2% to $2,335.81. Platinum XPT fell 0.2% to $1,024.54 and was set to decline 2.8% this week.
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