And gold recorded in the spot market 1724.50 dollars an ounce, down 0.52 percent at the end of the trading session, after it had jumped 1.1 percent earlier in the session.
US gold futures fell 0.3 percent to settle at $ 1723 an ounce.
David Major, director of metals trading at High Ridge Futures, said, “The vision is for the economy to recover and the dollar has retreated from its recent low levels and good performance in stock markets … In this climate, demand for gold will decline.”
“But on the other side of the coin, we are seeing an additional stimulus of $ 1.9 trillion being pumped into the economy and it is possible that we may see an inflationary environment in which gold tends to show good performance.”
The dollar index jumped to its highest level in three weeks as optimism about economic stimulus and positive developments in the area of Covid-19 vaccines boosted investors’ appetite for risk in the wider financial markets.
Gold is considered a hedge against inflation and is the likely outcome of a massive stimulus package.
What curbed the pressure on the yellow metal, the 10-year US Treasury yield fell from its highest level in a year.
Among other precious metals, silver fell 0.20 percent to $ 26.57 an ounce, while palladium rose 1.96 percent to $ 2,362.70 an ounce. Platinum fell 0.2 percent to $ 1,185.70 an ounce.