Picture used for illustrative purpose. File

Gulf Today Report

Gold declined on Tuesday as dollar gains outweighing the long-awaited $900 billion US stimulus.

Spot gold fell 0.3% to $1,870.69 per ounce by 07:02 GMT. US gold futures dropped 0.3% to $1,876.90.

Kunal Shah, head of research at Nirmal Bang Commodities in Mumbai said in the future, gold can get to $1,850-$1,860 levels as all the positive news are priced in by the market. 

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The new coronavirus strain in the UK led to a lockdown and a lot of countries closing their borders to Britain. That has affected the anticipated economic recovery and giving room for the dollar to gain momentum.

Gold has gained above 23% in 2020 due to the pandemic stimulus that fuelled fears of inflation.

Gold should trade in a $1,850-$1,930 range in the near-term, underpinned by pandemic developments, he added.

Silver slipped 1.6% to $25.74 an ounce. Platinum dropped 2% to $989.27 6, while palladium rose 0.1% to $2,310.75.