Gold Futures Settle Higher For The Day, Shed 0.7% In Week

Gold Futures Settle Higher For The Day, Shed 0.7% In Week

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Gold prices climbed higher on Friday, despite uncertainty about a quick fiscal stimulus in the U.S. amid rising coronavirus cases across the U.S. and several countries across the world.

Gold prices advanced despite dollar’s uptick. The dollar index, which slipped to 92.25 earlier in the day, rose to 92.43 about an hour past noon, and was last seen at 92.40, up 0.11% from previous close.

Gold futures for December ended up $10.90 or about 0.6% at $1,872.40 an ounce. Gold futures shed about 0.7% in the week.

Silver futures for December ended higher by $0.315 at $24.363 an ounce, while Copper futures for December settled at $3.2910 per pound, gaining $0.0890 for the day.

In stimulus news, the U.S. Treasury Department has asked the Federal Reserve to return unspent money allocated under the CARES Act to Congress, prompting criticism from the central bank and adding to market anxiety about broader economic growth.

The Fed responded to the decision in a rare public statement, saying it would prefer that the full suite of emergency facilities established during the coronavirus pandemic continue to serve their important role as a backstop for the still-strained and vulnerable economy.

People familiar with the decision say that either Mnuchin or a new Treasury secretary from the Biden administration may decide to renew emergency loan programs.

On the vaccine front, data from AstraZeneca and Oxford University showed their potential Covid-19 vaccine produced a strong immune response in older adults. Researchers expect to release late-stage trial results by Christmas.

Treasury yields rose and the dollar edged higher after a rare show of discard between U.S. Treasury Secretary Steven Mnuchin and Federal Reserve Chair Jerome Powell over releasing funds to further shore up the economy.

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