Picture used for illustrative purpose. File

Gulf Today Report

Gold declined on Wednesday as the dollar firmed, investors are keeping an eye on US Senate runoff in Georgia, the result will play an important role in Joe Biden administration’s fiscal policy.

Spot gold fell 0.3% at $1,943.46 per ounce after reaching a near two-month peak at $1,954.97 earlier in the session. US gold futures eased 0.4% to $1,947.50.

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Stephen Innes, a market strategist at Axi said, "the market is very reactive to the polls and liquidity is pretty thin. We had an initial widening in Democrats' favour and that poll has narrowed, (but) it's still quite uncertain, everything's on a knife-edge."

Republicans being the majority of the senate might lead to a little decline but gold’s status remains entrenched due to the inflation narrative, Innes added.

Gold can reach $2,000 by the end of the month.