Gold Declining Amid Doubts About US Stimulus Package

Gold fell on Wednesday 2 December, as investors were cautiously dominated due to doubts about progress in the stimulus package in the United States, while reports of developments regarding the Covid-19 vaccine added pressure.

Spot gold prices fell 0.3% to $ 1808.67 an ounce after an increase of more than 2% on Tuesday, which was the biggest jump in nearly a month. Gold in US futures fell 0.3% to $ 1813.30.

Republican Senate Majority Leader Mitch McConnell said the US Congress should introduce a new $ 1.4 trillion stimulus spending package linked to the second wave of coronavirus.

Treasury Secretary Stephen Mnuchin and House Speaker Nancy Pelosi held talks on stimulus yesterday for the first time since the US election.

Adding to the pressure on the metal, there were reports that US officials aim to start vaccinations for millions of Americans against Covid-19.

Among the other precious metals, silver fell 1.4% to $ 23.66 an ounce. Platinum fell 1.5% to $ 985.29 an ounce and palladium fell 0.4% to $ 2,396.91.