Gold fell on Friday after surging in the previous session, as the American dollar gained, but was set for its best week since late July on hopes for more central bank economic support as investors bet on a divided U.S. Congress under a Joe Biden presidency.
Spot gold fell 0.6% to $1,936.95 U.S. per ounce Friday morning. Prices soared 2.4% on Thursday on a dollar slide, setting it up for a 3.1% gain for the week.
U.S. gold futures fell 0.4% to $1,939.00.
The U.S. dollar rose, making gold less attractive to other currency holders.
Biden edged closer to victory but votes were still being counted in key states and Republican incumbent Donald Trump escalated efforts to cast doubt on the election’s integrity.
Prospects of a divided Congress dimmed chances for immediate stimulus, driving expectations the Fed might need to fill the gap.
The U.S. Federal Reserve on Thursday promised to keep interest rates low.
Near-zero interest rates amid massive pandemic-driven stimulus globally have helped non-yielding gold, considered an inflation hedge, gain over 27% this year.
Silver fell 0.7% to $25.15 U.S. an ounce. Platinum dropped 0.4% to $888.76 U.S., while palladium gains 0.5% to $2,388.40 U.S.
