Gold slumps as vaccine development make a headway
Picture used for illustrative purpose. File
Gulf Today Report
Gold prices fell on Thursday as the dollar remains steady and headway in the development of COVID-19 vaccine outweighs the worries over virus cases soaring and the prospect of a large stimulus.
Spot gold fell 0.21 % to $1,867.43 per ounce by 418 GMT, while US gold futures were down 0.4% at $1,866.60.
After slumping for five straight sessions, the dollar index rose by 0.2%, making gold expensive for holders of other currencies.
According to Ilya Spivak, DailyFx currency, a fiscal stimulus is what gold needs to advance, however, it may have a limiting factor that would lead to an increase in yields.
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US President-elect Joe Biden said on Wednesday that Republicans in the Congress would most likely move forward on COVID-19 relief legislation after Donald Trump leaves the office.
"Gold has the potential to take out support $1,850-$1,860 in the coming days and once that happens we will be looking at $1,750-$1,760 next," Ilya said.
Silver fell 0.5% to $24.20 per ounce. Platinum eased 0.5% $938.09, while palladium was down 0.3% at $2,322.53.
