Twenty kilogram gold and silver bricks are found at the ABC Refinery smelter in Sydney, New South Wales, Australia on Thursday, July 2, 2020.
David Gray | Bloomberg via Getty Images
Gold prices edged up on Thursday in the lulled holiday trade, helped by a US dollar which remained lower after Britain struck a trade deal with the European Union, although the gains were been capped by an increase in risk appetite.
Spot gold rose 0.3% to $ 1,877.41 an ounce. US gold futures rose 0.2% to $ 1,882.10.
“Supporting factors for the gold market include the weakness in the US dollar index over the past two days after gains earlier this week,” said Jim Wyckoff, senior analyst at Kitco Metals. “Global stock markets which are still in rally mode and only siphon funds from the safe haven precious metal” limit the rise.
Risk sentiment was bullish, as the US dollar was weighed down by investors switching to sterling as Britain struck a Brexit trade deal with the European Union. Investors have largely ignored US President Donald Trump’s threat not to sign a nearly $ 900 billion stimulus bill.
“Investors are quite optimistic about fiscal and monetary support from governments around the world, even if a vaccine reduces the potency of the virus,” said Giovanni Staunovo, analyst at UBS.
Concerns over the spread of a more transmissible variant of the coronavirus have led to tighter restrictions in Britain, highlighting concerns about a post-pandemic economic recovery.
Meanwhile, data on Wednesday showed that the number of Americans who first file for unemployment benefits remained high but fell last week.
Seen as a hedge against inflation and currency degradation, gold has gained over 23% this year, helped by massive stimulus measures to support economies hit by the pandemic.
Silver rose 0.9% to $ 25.77. Platinum gained 0.7% to $ 1,021.19 and palladium rose 0.2% to $ 2,328.64.
Trade should be moderate before the Christmas holidays.