Gold prices wilted on Friday after rising sharply for the past three sessions as the dollar rebounded, but the metal was on track to post a third straight weekly gain on stimulus hopes in the United States.
Spot gold fell 0.3% to $1,880.20 U.S. per ounce. For the week, it was up 2.3% so far. U.S. gold futures dropped 0.3% to $1,885.30.
Meanwhile, U.S. Congressional Republicans and Democrats scrambled to pass a new round of coronavirus aid on Thursday with lawmakers from both parties saying that failure to agree was no longer an option.
The U.S. dollar rose 0.2%, just above a more than two-year trough, lowering gold’s appeal to other currency holders.
Analysts also said gold would find support from the Federal Reserve’s promise to continue its bond-buying program until "substantial further progress" is seen in restoring full employment and hitting its 2% inflation target.
There’s a lot of expectation getting built into gold prices, but with both the U.S. government and the Fed making the right noises about further stimulus and support for the economy, experts say gold could climb above $1,900 by year-end.
Denting sentiment for gold further, advisers to a U.S. regulator overwhelmingly endorsed emergency use of Moderna Inc’s (NASDAQ:MRNA) coronavirus vaccine.
Silver fell 0.9% to $25.82 U.S. an ounce. Platinum dropped 0.9% to $1,034.50 U.S. and palladium eased 0.3% to $2,334.53 U.S., but was up 0.7% in the week.
