On Thursday, gold prices retreated from a two-week high, after selling to take profits.
Investors sold to take profits after rising in the previous session, while expectations for further stimulus and the decline of the dollar limited losses.
According to Reuters, by 17:42 GMT, spot gold fell 0.4% to $ 1864.09 an ounce, after hitting its highest level since January 8 at $ 1874.86 earlier in the session.
Gold was up 1.7% on Wednesday.
US gold futures fell 0.2% to $ 1862.80 an ounce.
“It’s just 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.
He continued: “However, the chances of increasing the stimulus and the decline of the dollar will continue to support gold if we expand the scope of vision.”
Joe Biden was sworn in as US president on Wednesday, as markets focus on his proposed $ 1.9 trillion stimulus package, which 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 competing 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, spot silver fell 0.2% to $ 25.75 an ounce.
Platinum rose 0.9% to 1119.43 dollars an ounce, while palladium fell 0.2% to 2367.82 dollars an ounce.