Gold prices fell today, Thursday, from their highest level in two weeks, as investors began selling to take profits after a rise in the previous session, while expectations for more stimulus and the decline of the dollar from losses.
By 1742 GMT, spot gold fell 0.4 percent to $ 1864.09 an ounce, after hitting its highest level since January 8th at $ 1874.86 earlier in the session. Gold was up 1.7 percent on Wednesday.
US gold futures fell 0.2 percent to $ 1862.80 an ounce.
“It’s nothing more than some slight profit taking after the recent rally in anticipation of further stimulus from the Biden administration,” said David Megir, director of metals trading at High Ridge Futures..
“However, chances of increasing the stimulus and declining dollar will continue to support gold if we broaden the scope of vision.”
Joe Biden was sworn in as President of the United States on Wednesday, as markets focus on his proposed $ 1.9 trillion stimulus package that would require approval from a divided Congress..
Gold is considered a hedge against inflation that may result from stimulus measures to mitigate the repercussions of the Corona pandemic.
On the other hand, the dollar fell to a week’s low against rival currencies, making gold denominated in the US currency less expensive for investors holding other currencies..
Meanwhile, the number of Americans filing for new claims for unemployment benefits decreased slightly last week.
As for the other precious metals, the spot price of silver fell 0.2 percent to $ 25.75 an ounce.
Platinum rose 0.9 percent to 1119.43 dollars an ounce.
Palladium fell 0.2 percent to 2,367.82 dollars an ounce.
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