(Reuters) – Gold prices did not change much in the thin holiday trading on Thursday, but the yellow metal was enroute to record the best annual performance in a decade.
Spot gold was almost flat at $ 1,893.84 per ounce by 1000 GMT, but rose more than 24% for the year, the best level since 2010. U.S. gold futures were up 0.3% to $ 1,898.70.
“With less activity from market participants on the last day of the year, I expect gold to move in a narrow range. Some moderate support comes from a slightly weaker U.S. dollar and slightly lower U.S. interest rates, ”said UBS analyst Giovanni Staunovo. [US/]
“We are looking to move towards $ 1,950 in the first quarter of 2021, with the growing monetary and fiscal policy pushing inflation expectations up and with U.S. real rates falling further. ”
The dollar index fell to a pool of more than two years, making gold cheaper for other currency holders. [USD/]
European shares fell as wider coronavirus locks in Britain lowered expectations for a rapid economic recovery in 2021, despite vaccine-spreading campaigns. [.EU]
Monitoring gold progress was the rejection of Republican Senate leader Mitch McConnell for a swift vote by the Senate on a bill to increase U.S. relief reviews.
Unprecedented stimulus measures and low interest rates to case economies from the impact of this year’s pandemic have benefited gold, as it is seen as a hedge against inflation.
Silver fell 0.6% to $ 26.44 an ounce but rose more than 48% this year, the best performance since 2010.
Platinum rose 0.8% to $ 1,074.33 per ounce and rose above 10% in 2020. Palladium rose 0.4% at $ 2,372.04 and is on track for its fifth straight year of gains with a 22% rise.
Reporting by Asha Sistla in Bengaluru; Edited by Vinay Dwivedi