(Reuters) – Gold prices rose on Thursday, backed by weaker dollars ahead of a widely expected Brexit trade deal and uncertainty over a new version of the coronavirus overshadowed vaccine expectations.
Spot gold was 0.3% higher at $ 1,877.43 per ounce by 1003 GMT. U.S. gold futures rose 0.3% at $ 1,882.90.
“A combination of weaker dollars, negative realism levels and low yields combined with uncertainty surrounding the new type of coronavirus is currently helping gold,” said UBS analyst Giovanni Staunovo.
Concerns over the spread of a more contagious and highly contagious coronavirus strain in Britain have fueled the safe appeal of the metal.
Elsewhere, Britain and the European Union were on the verge of a post-Brexit trade deal, supporting the pound and the pressure on the dollar.[USD/]
“However, overall, the outlook for gold is not bullish … the recent prospect of gold has dampened gold demand,” said Hareesh V, head of product research at Geojit Financial Services, adding that he did not expect that gold would disappear.
“Economic uncertainty remains and the metal will continue to draw support from low interest rates. ”
Data on Wednesday showed that the number of Americans filing claims for the first time for unemployment benefits remained high but added an unexpected drop last week.
Meanwhile, U.S. President Donald Trump’s threat not to sign a nearly $ 900 billion incentive bill has been largely with market participants.
“Investors are optimistic about fiscal and financial support from governments around the world, even as vaccines reduce the strength of the virus. The economy needs it, ”said UBS ‘Staunovo.
Bullion, up around 24% this year, is poised for the biggest annual gain since 2010, with the unprecedented impetus pumped in by major governments to counter the economic blow of the ongoing coronavirus crisis. expect to raise inflation rates.
Silver climbed 1% to $ 25.79 an ounce. Platinum gained 0.7% to $ 1,021.30 and palladium rose 0.2% to $ 2,328.18
Reporting by Diptendu Lahiri in Bengaluru; Edited by Kirsten Donovan