Gold Undergoes A First Weekly Loss

Precious metals have been watching the state of the US COVID-19 fiscal stimulus and support package on the final trading day of the holiday-shortened week. As presently, it is a game of wait-and-see.

February gold futures climbed 0.24%, or $4.50, to $1,882.60 per ounce at 17:38 GMT on Thursday on the New York Mercantile Exchange’s COMEX division. Gold prices posted a weekly decline of 0.43%, paring their year-to-date rally to under 24%.

Silver, the sister commodity to gold, will end the session above following a roller coaster ride on Thursday. March silver futures totaled 0.09%, or $0.024, or to $25.945 per ounce. The white metal also posted a weekly fall of 1.18%.

Gold and silver found assistance in the ambiguity encompassing the $908 billion COVID-19 incentive and relief bill. President Donald Trump directed that Congress raise incentive payments from $600 to $2,000 and cut what he regarded waste, like the $10 million in gender programs for Pakistan and $800 million for Cambodia.

Democrats introduced an updated variant of the 5,500-page bill, but it did not add any spending cuts. Republicans voted versus the measure, claiming that the Democratic leaders in Congress have a selective hearing because they preferred to overlook the president’s demands for decreasing waste.

The US dollar index declined

For now, the law is at a pause

On Monday, Washington signed a $1.9 trillion government spending bill, as well as the $908 billion incentive plan. It sparked a rally in the metals market over inflation worries. Now that the law is in purgatory, it might be difficult for metal commodities to find help in the short-term.

In separate geopolitical news, the United Kingdom and the European Union (EU) have hit a post-Brexit trade agreement before Britain’s exit from the 27-nation bloc next week. The 2,000-page bill details are limited, but Prime Minister Boris Johnson insists that the deal gives the UK control over its money, borders, laws, and fishing waters. European Commission President Ursula von der Leyen declared that the UK’s agreement does not undermine the EU’s standards.

The dollar declined on Thursday as the US Dollar Index, which gauges the dollar upon a basket of currencies, slid 0.05% to 90.37, from an opening of 90.41. The index will appreciate a weekly increase of 0.6%, but the DXY is still under 6.25% year-to-date. A more moderate greenback is suitable for dollar-pegged commodities because it makes it more affordable for foreign investors to buy.