Gold futures settled slightly lower on Friday as the dollar rebounded from recent losses, but the safe-haven asset recorded a fairly sharp rise for the week amid a surge in coronavirus cases across the world and continued impasse on the stimulus front.
The dollar advanced amid fresh U.S.-China tensions, uncertainty over a post-Brexit trade deal and the continued impasse over fiscal stimulus in the U.S.
The dollar index rose to 90.13 around mid-morning and despite subsequently coming off that level, remained firmly above the flat line. A little while ago, the index was at 90.02, up 0.21% from previous close.
Gold futures for February ended down $1.50 or about 0.1% at $1,888.90 an ounce. On Thursday, gold futures had settled at 6-week high. For the week, gold futures gained about 2.5%.
Silver futures for March ended lower by $0.148 at $26.033 an ounce, while Copper futures for March settled at $3.6325 per pound, gaining $0.0310.
According to reports, the U.S. is adding dozens of Chinese companies, including the country’s top chipmaker SMIC, to a trade blacklist.
On the stimulus front, U.S. lawmakers continued negotiations to clinch a deal for a new stimulus package, with Senate Majority Leader Mitch McConnell saying talks could spill into the weekend.
In Brexit news, Michel Barnier, the EU’s chief negotiator said there was a chance of getting an agreement but the path to such an agreement was very narrow.
European Commission President Ursula von der Leyen said bridging “big differences”, particularly on fishing rights, would be “very challenging” while Prime Minister Boris Johnson said discussions were in a “serious situation”. Johnson signaled that a no deal continued to be a “very likely” outcome.
Meanwhile, a report released by the Conference Board Friday morning showed its index of leading U.S. economic indicators increased by slightly more than expected in the month of November.
The Conference Board said its leading economic index rose by 0.6% in November after climbing by 0.8% in October. Economists had expected the index to increase by 0.5%.
Source: Read Full Article