Gold futures closed lower on Monday, following back-to-back gains, abandoning an early rise in a choppy trading session, with investors deeming some US dollar strength and a global equity rally sufficient for bullion.
Bullion had briefly marked a slight rebound to its highest level in about six intraday weeks after President Donald Trump signed a coronavirus relief package over the weekend, ending a brief standoff between the White House and the Congress.
Gold is seen as protection against the devaluation of the dollar and the large deficits accumulated by governments to stem the adverse economic effects of the COVID-19 pandemic.
Bullion benefited over the year from the economic uncertainties created by COVID-19, but struggled to maintain key levels near $ 1,900, with the rollout of experimental vaccines and remedies that were quickly cleared by government health agencies to fight the pandemic.
Risky markets saw a boost on Monday after the relief bill was signed, as the coronavirus pandemic continued to soar across the country and the rest of the world.
The legislation has been seen as supporting gold prices because government spending puts pressure on the dollar. However, much of the movement of gold from COVID aid measures may have been embedded in the metal, some experts have said.
A neutral dollar, slightly higher during the session, ultimately helped push gold down. A firmer dollar tends to make the assets valued in the product less attractive to overseas buyers.
The dollar was held stable at 90.323, as measured by the ICE US Dollar DXY index.
Gold for delivery in February GCG21,
paid $ 2.80, or 0.1%, to settle at $ 1,880.40, after posting a 0.3% weekly decline on Thursday and breaking a streak of three consecutive weekly gains, according to FactSet data.
Money for delivery in March SIH21,
meanwhile, which sometimes trades both as an industrial metal and as a precious metal, was revived by the hope of a better economic context thanks to the passage of humanitarian aid. The price of silver climbed 63.1 cents, or 2.4%, to $ 26.539 an ounce, after falling 0.3% weekly on Thursday.
Metals trading last week settled an hour earlier Thursday, at 12:30 p.m. EST, and remained closed respecting Christmas Friday. The markets will be closed this Friday for the New Year.
Elsewhere on Comex, copper March HGH21,
added less than a dime, or 0.2%, to settle at $ 3.571 a pound, after the industrial metal posted a weekly loss of 1.9% on Thursday.
January platinum PLF21,
ended at $ 1,043.10 an ounce, a gain of $ 14.20, or 1.4%, after a weekly decline of 1.4%. Mars palladium PAH21,
added $ 5.90, or 0.3%, to settle at $ 2,351.80 an ounce, following a weekly decline of 1.1%.