Gold Heading For a Third Weekly Gain as Dealers Expect US Aid

Gold prices retreated as the dollar rebounded after growing hopes of approval of stimulus in the United States led gold to rise for three days, putting the yellow metal on the path of achieving gains for the third week in a row.

And gold in spot transactions fell 0.1% to 1884.41 dollars an ounce before the Tokyo Stock Exchange closed. For the week, gold rose 2.4%. Gold in US futures fell 0.1% to $1,889.40.

Republican and Democratic lawmakers in Congress accelerated their efforts to approve a new round of aid to ease the fallout from the Coronavirus on Thursday, while lawmakers from both parties said failure to reach an agreement was no longer an option.

The dollar index rose 0.2%, just over a little more than its lowest level in more than two years, reducing gold’s attractiveness to holders of other currencies.

Analysts say gold will be supported by the Federal Reserve’s pledge to continue its bond-buying program until “another major breakthrough” is made in restoring full employment and reaching its 2% inflation target.

As for the other precious metals, silver fell 1.1% to $ 25.77 an ounce. Platinum fell 1% to $ 1,033.67 and palladium rose 0.1% to $ 2,343.18, a rise of 0.8% for the week.