Gold prices drifted lower on Thursday as investors sought riskier assets amid hopes U.S. President-elect Joe Biden will announce a big coronavirus relief package later in the day.
Higher U.S. Treasury yields and positive updates on the coronavirus vaccine front also contributed to increased risk sentiment in the market, which in turn dimmed the demand for the yellow metal.
The dollar’s retreat helped limit gold’s losses. The dollar index, which advanced to 90.58 in the European session, fell to a low of 90.08 before recovering to 90.25 and limit its loss to around 0.1%.
Gold futures for February ended down $3.50 or about 0.2% at $1,851.40 an ounce, well off the day’s low of $1,826.60.
Silver futures for March ended up $0.230 at $25.802 an ounce, while Copper futures for March settled at $3.6645 per pound, gaining $0.0475.
The fresh U.S. stimulus package is expected to include $2,000 in stimulus checks, funding to state and local governments and other emergency spending measures. CNN reported that Biden is mulling huge spending package worth about $2 trillion.
First-time claims for U.S. unemployment benefits climbed by much more than expected in the week ended January 9th, according to a report released by the Labor Department on Thursday.
The report said initial jobless claims rose to 965,000, an increase of 181,000 from the previous week’s revised level of 784,000. Economists had expected jobless claims to inch up to 795,000 from the 787,000 originally reported for the previous week.
A report released by the Labor Department on Thursday showed U.S. import and export prices both increased by more than expected in the month of December.
The Labor Department said import prices climbed by 0.9% in December after edging up by a revised 0.2% in November. Economists had expected import prices to rise by 0.6% compared to the 0.1% uptick originally reported for the previous month.
The material has been provided by InstaForex Company – www.instaforex.com