Gold futures slipped Friday morning as the U.S. dollar rallied and investors parsed a $ 1.9 trillion COVID-19 relief plan by President Joe Biden announced late Thursday.
Bullion has been particularly sensitive to movements in the U.S. dollar and rising government debt yields, which may be dampening desire for precious metals.
On Thursday, February will be GC00 gold prices,
GCG21,
it posted $ 11.40, or 0.6%, at $ 1,839.90, after a 0.2% decline Thursday.
Delivery for March SI00,
SIH21,
meanwhile, it peaked at 92 cents, or 3.7%, to trade at $ 24.87 an ounce, after adding 0.9% gold metal sister, a day ago.
For the week, gold is still holding a 0.3% rise, while silver led for a weekly rise of 0.9%.
At the last survey, the dollar was trading up 0.2% at 90.44, as measured by the ICE US Dollar IndexDXY, a measure of the buck against half a dozen major currencies.
The dollar for the week, meanwhile, was looking at a 0.4% gain, while the 10 – year TMUBMUSD10Y Finance note,
has been largely stable at around 1.10% since last Friday.
A richer yield and a stronger dollar may pull off the appeal of owning a bullion at a dollar price but both factors have been steady in recent trading.
On Thursday, gold received a lift, pushing lower yields and higher debt prices, after Federal Reserve Chairman Jerome Powell said it was not time to consider easy-to-leave monetary policies, as the U.S. fighting the economic crisis caused by COVID – 19 pandemics.
“Now is not the time to talk about leaving,” Powell said in a webcast with Princeton University on Thursday.
“With the Fed Chairman promising to give sufficient warning time before such chapering is avoided to avoid a repetition of the infamous 2013 ‘tantrum taper’, golden bulls can take heart from the continued support from the central bank that should prevent depreciation of precious metals for a longer period of time, ”Han Tan, market analyst at FXTM, wrote in a research note on Friday.
Over the long-running commodity analysts, they are bullish on gold, especially behind the cost of government outside the U.S., which could lead to declining dollars and gold prices. reduction.
Biden’s fiscal plan calls for approximately $ 1,400-per-person payments to most households, a $ 400-a-week unemployment insurance extension through September, extended paid leave and an increase in child tax credit and assistance for states with the COVID-19 vaccine distribution.
On Friday, investors also released a report on December sales fell for the third straight month, falling 0.7%. Economists surveyed by the Dow Jones and The Wall Street Journal have forecast a 0.1% decline.