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Gold, silver edge lower as firm dollar weighs

Published 04/02/2021, 12:06 pm
Updated 04/02/2021, 12:12 pm
© Reuters.
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Feb 4 (Reuters) - Gold and silver prices edged lower on Thursday, weighed down by a stronger dollar, while investors awaited the passage of a massive stimulus package in the United States.

FUNDAMENTALS

* Spot gold XAU= eased 0.1% to $1,832.84 per ounce by 0044 GMT. U.S. gold futures GCv1 were steady at $1,834.70.

* Spot silver XAG= shed 0.5% to $26.72. Prices have eased since hitting a near eight-year peak of $30.03 on Monday as the social media-driven rally fizzled out. The dollar .DXY hit its highest in over two months on Wednesday, making precious metals expensive for holders of other currencies.

* Benchmark 10-year Treasury yield US10YT=RR rose to its highest in over three weeks. US/

* The U.S. House of Representatives pushed ahead on Wednesday with a manoeuvre to pass a $1.9 trillion coronavirus aid plan without Republican support, although President Joe Biden said he would consider tighter limits on who would qualify for $1,400 checks. While easy monetary policy can support the U.S. economy in the long term, more fiscal help may be needed in the short term to carry the economy through the pandemic, Cleveland Federal Reserve Bank President Loretta Mester said on Wednesday. U.S. private payrolls rebounded more than expected in January, suggesting the labour market recovery was back on track after the economy shed jobs in December. The Bank of England on Thursday is likely to set its sights on the prospects of economic recovery later this year, and any backing it gives to the idea of negative interest rates as a new stimulus weapon will probably be cautious. Platinum XPT= fell 0.4% at $1,096.08 an ounce and palladium XPD= lost 0.2% to $2,270.06.

DATA/EVENTS AHEAD (GMT) 1200 UK BOE Bank Rate

Feb 1200 UK GB BOE QE Corp

Feb 1330 US Initial Jobless Claim Weekly 1500 US Factory Orders MM

Dec

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