By Barani Krishnan
Investing.com – Gold prices rose on Thursday but still ended in a weekly loss, after a US coronavirus stimulus package twisted and unexpected dollar gains in recent days held the yellow metal back to extend a rally by three weeks.
on the New York Comex settled $ 5.10, or 0.3%, at $ 1,883.20.
But for Friday’s shortened holiday week before Christmas, the contract was down 0.3% at 12:56 p.m. ET (5:56 p.m. GMT), after raising about $ 100, or 6%, over the previous three weeks.
, which algorithms and hedge funds use to decide the direction of futures, hovered around $ 1,878, up 0.4% on the day and down 0.1% on the week.
Gold prices were reversed this week as the dollar rebounded sharply from two-and-a-half-year lows after the British pound collapsed on further Brexit issues.
Gold has also been embezzled since Sunday’s agreement by the US Congress on a $ 900 coronavirus stimulus and $ 1.4 trillion in federal government funding. Both of those packages are now in limbo after President Donald Trump’s refusal to sign them, particularly over his objection to a measly $ 600 Covid-19 personal aid for needy Americans endorsed by his own Republican Party.
Rival Democrats in Congress have backed Trump in a rare display of unity with the president, while Republicans have shown no sign of agreeing to the president’s demands although his signature is required to prevent the closure of the federal government.
Gold fell earlier in the week on the strength of the dollar before recovering in recent days on the stimulus drama. The rebound, however, remained below its Friday settlement of $ 1,888.90, resulting in a weekly loss.
For the week ahead, “upcoming Brexit-related headlines, as well as developments surrounding the coronavirus saga could inject some volatility into the global financial market,” gold analyst Haresh Menghani said in a post. at fxstreet.com. “This, in turn, could help traders seize short-term opportunities.”
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