Gold to Continue Its Weekly Decline Due to Stimulus Concerns And Vaccine Optimism

Gold prices are heading today, Friday, to record a decline for the second week in a row, as the attractiveness of the yellow metal is under pressure from promising tests for a Covid-19 vaccine and news that the US Treasury is ending emergency loan programs.

Gold fell in immediate transactions 0.1% to 1866.28 dollars an ounce with the Asian markets closed, and it fell 1.1% for the week.

US gold futures rose 0.3% to $ 1867.90.

In a letter to Jerome Powell, Chairman of the Federal Reserve Board, Stephen Mnuchin, Secretary of the Treasury, said that $ 455 billion earmarked for the Treasury under the CARES Act will be available to Congress for reallocation. Global stocks fell today, after his remarks.

And gold, which is considered a hedge in the face of inflation and a depressed currency, has gained 23% since the beginning of the year, mainly benefiting from unprecedented stimulus measures that were unveiled to mitigate the impact of the pandemic.

Meanwhile, data showed that the vaccine that AstraZeneca and the University of Oxford are working on produced has achieved a strong immune response in the elderly, allaying some of the concerns that have been fueled by the escalation of the pandemic.

As for the rest of the precious metals, silver rose 0.1% to $ 24.12 an ounce. Platinum and palladium gained 0.4% to $ 955.09 and $ 2,333.69, respectively.