Gold prices drifted lower on Monday, extending losses to a third straight session, as the dollar recovered after early weakness and stayed firm against most of its peers.
However, gold’s decline was limited due to optimism about stimulus. Traders were also looking ahead to the Federal Reserve’s monetary policy announcement, due on Wednesday.
Reports showing spikes in coronavirus cases and tighter lockdown restrictions in several places across the globe raised concerns about growth and halted the bullion’s slide.
The dollar index, which rose to 90.52, was last seen hovering around 90.40, up 0.18% from previous close.
Gold futures for February ended down $1.00 at $1,855.20 an ounce, after falling to a low of $1,846.20 from a high of $1,867.40.
Silver futures for March ended lower by $0.072 at $25.484 an ounce, while Copper futures for March settled at $3.6295 per pound, gaining $0.0035.
On the stimulus front, lawmakers in Washington are working on the $1.9-trillion stimulus proposal from the new president.
According to the Financial Times, Joe Biden faces a narrow window to clinch bipartisan support for his $1.9 trillion stimulus plan, after congressional Democrats said they wanted a deal before the impeachment trial against Donald Trump.
Investors, however, expect some additional spending to materialize eventually that will help lift global economic growth.
The Federal Reserve, which will announce its policy on Wednesday, is widely expected to put off any changes in their bond-buying program until next year.
The material has been provided by InstaForex Company – www.instaforex.com