Gold set for weekly decline as US stimulus hopes ebb

SINGAPORE: Gold fell and was on the way to its first weekly decline in three weeks on Friday, as fading chances of a US stimulus agreement before the November 3 presidential election dented the metal’s appeal as an inflation hedge.

Spot gold fell 0.3 per cent to $1,901.87 per ounce. Bullion is down 1.4 per cent so far this week. US gold futures settled 0.1 per cent lower at $1,906.40.

“With a stimulus bill this year highly uncertain, gold remains beholden to the USD,” said Tai Wong, head of base and precious metals derivatives trading at BMO.

“While sentiment for gold remains strongly bullish without a strong shortterm driver, we seem to be oscillating around $1,900 unable to substantially break the month-long range of $1,850-$1,950.”

The dollar index eased 0.2 per cent on the day, but was on track for a weekly gain, making it more expensive for holders of other currencies to buy gold.

— Reuters