Gold set to post weekly, monthly decline on firmer dollar
Gold prices were steady on Friday as investors waited for developments around a U.S. stimulus package, although the metal was on course to post a weekly and monthly decline hurt by a stronger dollar.
Gold prices were steady on Friday as investors waited for developments around a U.S. stimulus package, although the metal was on course to post a weekly and monthly decline hurt by a stronger dollar.
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FUNDAMENTALS
* Spot gold was unchanged at $1,840.91 per ounce by 0058 GMT. Prices were down 0.6% for the week and 2.9% for the month. U.S. gold futures rose 0.1% to $1,839.70.
* The dollar rose 0.2%, making gold expensive for holders of other currencies.
* The greenback has risen 0.8% for the month helped by higher U.S. Treasury yields. Higher yields on bonds make gold a less attractive investment because it pays no interest.
* U.S. jobless claims fell in the latest week, while fourth-quarter gross domestic product figures met expectations.
* The International Monetary Fund urged that fiscal support should stay in place until an economic recovery is firmly underway even as global debt likely reached 98% at the end of 2020.
* A $1.9 trillion U.S. coronavirus stimulus deal proposed by President Joe Biden is yet to be passed.
* Global gold demand for gold fell to its lowest in 11 years in 2020, while India`s consumption fell to its lowest in 26 years, the World Gold Council said on Thursday.
* Holdings of the world`s largest gold-backed exchange-traded fund, SPDR Gold Trust fell 0.4% on Thursday.
* Silver dropped 0.7% to $26.18 an ounce, having risen 4.5% on Thursday, after some traders moved to cover short positions on rumours about a GameStop-style squeeze driven by retail investors.
* Silver was on track to post its best week since week ended Dec. 18, up 2.8%.
* Platinum gained 0.3% at $1,073.68 and palladium rose 0.4% to $2,344.17.
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