Gold retreats as dollar climbs
- 18 Dec 2020
Gulf Today Report
Gold prices declined on Friday after the dollar regain its strength but it is set for a gain following hope for US fiscal stimulus.
Spot gold fell 0.3% to $1,880.20 per ounce by 03:23 GMT. For the week, it was up 2.3% so far. US gold futures dropped 0.3% to $1,885.30.
According to Margaret Yang, a strategist at DailyFX, "the US fiscal stimulus is more or less priced in... so traders are trying to lock in profits before the weekend."
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The dollar advanced by 0.2%, reducing gold’s appeal to other currency holders.
Yang added that a break above the $1,892 area with support from a dovish US Federal Reserve and a weaker dollar could signal further upside with resistance at $1,910 ahead.
With talks surrounding stimulus and support for the economy from US, gold is likely to increase above $1,900 by the end of the year.
Silver fell 0.9% to $25.82 an ounce. Platinum dropped 0.9% to $1,034.50 and palladium eased 0.3% to $2,334.53, but was up 0.7% in the week.