Dec 17 (Reuters) - Gold prices steadied near a one-week high
on Thursday, as investors cheered progress on a U.S. fiscal
stimulus deal, while the Federal Reserve's pledge to keep rates
low until an economic recovery is secure added to the support.
FUNDAMENTALS
* Spot gold was little changed at $1,864.36 per ounce
by 0051 GMT, trading near a one-week high of $1,865.50 hit in
the previous session.
* U.S. gold futures rose 0.5% to $1,867.80.
* U.S. congressional negotiators on Wednesday were "closing
in on" a $900 billion COVID-19 aid bill, including $600 to $700
stimulus checks and extended unemployment benefits, as a Friday
deadline loomed, lawmakers and aides said.
* With interest rates likely to stay near zero for years to
come, the Fed on Wednesday more explicitly promised to continue
its bond-buying programme until "substantial further progress"
in restoring full employment and hitting its 2% inflation
target.
* Adding to growing signs of a slowdown in the economic
recovery, U.S. retail sales fell more than expected in November.
* Market participants now await the Bank of England's policy
decision, due at 1200 GMT, where it is expected to refrain from
further stimulus ahead of a possible no-deal Brexit that is
likely to deepen the pandemic-ravaged economy's problems.
* Gold is seen as a hedge against inflation and currency
debasement.
* Britain and the European Union have moved closer to sealing
a new trade deal but it was still unclear if they would succeed,
the bloc's chief executive said on Wednesday.
* Silver dropped 0.3% to $25.27 an ounce and platinum
fell 0.3% to $1,031.50, while palladium gained
0.3% to $2,333.83.
DATA AHEAD(GMT)
1300 U.K Bank of England's policy decision
1330 U.S. Initial Jobless Claims w/e Dec. 12
(Reporting by Nakul Iyer in Bengaluru; Editing by Subhranshu
Sahu)
.Source
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