(Reuters) – Gold prices rose on Thursday, supported by a weaker dollar ahead of a widely anticipated Brexit trade deal, as uncertainties around a new variant of the coronavirus overshadow vaccine optimism.
Spot gold was up 0.1% at $ 1,873.96 an ounce at 12:33 p.m. GMT. US gold futures were little changed at $ 1,878.60.
“A combination of a weaker dollar, negative real rates and low yields as well as uncertainties around the new strain of coronavirus is helping gold right now,” UBS analyst Giovanni Staunovo said.
Concerns about the spread of a more infectious variant of the coronavirus that has led to tighter restrictions in Britain have lifted the safe-haven appeal of the precious metal.
Elsewhere, Britain and the European Union were on the verge of a post-Brexit trade deal, supporting the pound and weighing on the dollar.[USD/]
“However, overall the outlook for gold is not optimistic … Recent vaccine optimism has tarnished gold’s appeal,” said Hareesh V, head of materials research. premieres at Geojit Financial Services, adding that he also didn’t expect gold to collapse.
“Economic uncertainties still exist and the metal will continue to benefit from the support of extremely low interest rates.”
Data from Wednesday showed that the number of Americans who first filed for unemployment benefits remained high but had declined last week.
Meanwhile, the threat from U.S. President Donald Trump not to sign a nearly $ 900 billion stimulus bill has been largely ignored by market participants.
“Investors are quite optimistic about fiscal and monetary support from governments around the world, even if a vaccine reduces the potency of the virus. The economy needs it, ”said Staunovo of UBS.
The bullion, up about 24% this year, is expected to register its biggest annual gain since 2010, with the unprecedented stimulus launched by major governments to offset the economic blow from the coronavirus crisis which is expected to push up interest rates. ‘inflation.
Silver rose 0.7% to $ 25.71. Platinum gained 0.3% to $ 1,017.62 and palladium rose 0.4% to $ 2,332.55.
Reporting by Diptendu Lahiri in Bengaluru Editing by Kirsten Donovan and Mark Heinrich