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PRECIOUS-Gold flat as dollar ticks higher, U.S. stimulus talks drag

Published 11/12/2020, 09:57 pm
Updated 11/12/2020, 10:00 pm
© Reuters.
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(Adds comments, details and updates prices)

* Dollar headed for first weekly gain in four

* Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa

By Eileen Soreng

Dec 11 (Reuters) - Gold prices were listless on Friday, with gains kept in check by a slight uptick in the dollar and caution setting in as investors grappled with a delay in a U.S. COVID-19 relief package.

Spot gold XAU= was little changed at $1,834.55 per ounce at 1047 GMT. U.S. gold futures GCv1 were flat at $1,838.10.

"Market seems to have settled in a steady range. The key drivers (going forward) would be the size and scale of the U.S. stimulus, the trajectory of the dollar, and inflation of course," said independent analyst Ross Norman.

"Gold's got half an eye on vaccines, stimulus and dollar. But the effect is muted. Market has thinned out already."

U.S. House Speaker Nancy Pelosi said on Thursday that Congress could work on a COVID-19 relief package until Dec. 26, when a range of emergency aid programs are set to expire. dollar index .DXY inched 0.1% higher, making bullion expensive for holders of other currency, and was headed for its first weekly gain in four. USD/

"Technically the first support zone is now placed at $1,830 ... For a clearer bullish signal we would now need the price to surpass the top reached earlier this week at $1,875," ActivTrades' chief analyst Carlo Alberto De Casa said in a note

Gold, seen as a hedge against inflation and currency debasement, has risen 21% this year amid massive amounts of stimulus measures aimed at reviving pandemic-hit economies.

"We will get a stimulus deal by the end of the month and the U.S. Federal Reserve will maintain its very loose monetary stance and that should help underpin gold into 2021," said Michael Hewson, chief market analyst at CMC Markets UK.

Silver XAG= fell 0.4% to $23.86 per ounce. Palladium XPD= was flat at $2,330.66 per ounce and platinum XPT declined 0.8% to $1,018.10 per ounce

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