Gold rose to an over one-week high on
Thursday as the dollar weakened on hopes of coronavirus vaccine
roll-outs, while investors also weighed the possibility of more
Spot gold rose 0.2% to $1,835.37 per ounce by 0402
GMT. U.S. gold futures were up 0.5% at $1,838.60.
Optimism over a stimulus deal and vaccine progress favoured
riskier assets and pushed the U.S. dollar to a near 2-1/2-year
Congressional Republicans and Democrats were unable to agree
on a fresh coronavirus relief package, though early signs
indicate that a $908 billion bipartisan proposal could be
gaining traction as a negotiating tool.
Stimulus talks, especially over a bipartisan agreement, will
support gold in the short term as it would weaken the U.S.
dollar, said Michael Langford, executive director at corporate
advisory and consultancy firm AirGuide.
Positivity over a COVID-19 vaccine could have limited impact
on bullion going forward as much of that optimism is priced in
by markets, he added.
Health experts in the United States welcomed Britain's
emergency approval of Pfizer Inc's vaccine, in a sign
that U.S. regulators may soon follow suit.
"The key drivers of gold, real interest rates and the
dollar, are expected to remain soft without concrete economic
progress worldwide or an effective vaccine readily available to
the masses," Avtar Sandu, senior commodities manager at Phillip
Futures, said in a note.
Gold is seen as a hedge against inflation likely to result
from large stimulus measures.
Silver fell 0.3% to $24.02 an ounce, while platinum
dropped 0.3% to $1,011.47 and palladium was up
0.2% at $2,404.18.
(Reporting by Nakul Iyer in Bengaluru; Editing by Sherry
Jacob-Phillips and Ramakrishnan M.)
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