NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

Gold set to post weekly, monthly decline on firmer dollar

Published 29/01/2021, 12:34 pm
© Reuters.
XAU/USD
-
XAG/USD
-
GC
-
SI
-
PA
-
PL
-
GLD
-
DXY
-

Jan 29 (Reuters) - 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.

FUNDAMENTALS

* Spot gold XAU= 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 GCv1 rose 0.1% to $1,839.70.

* The dollar .DXY 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. USD/

* 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 GLD fell 0.4% on Thursday. GOL/ETF

* Silver XAG= 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 XPT= gained 0.3% at $1,073.68 and palladium XPD= rose 0.4% to $2,344.17.

DATA/EVENTS AHEAD (GMT) 0630 France GDP Preliminary QQ

Q4 0900 Germany Unemployment Change, Rate SA

Jan 0900 Germany GDP Flash QQ SA, YY NSA

Q4 1330 US

Consumption, Adjusted

Dec

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.