PRECIOUS-Gold slips on profit taking; stimulus bets limit losses

PRECIOUS-Gold slips on profit taking; stimulus bets limit losses

Reuters  | Jan 22, 2021 03:20

PRECIOUS-Gold slips on profit taking; stimulus bets limit losses

* Dollar index at near one-week low
* U.S. weekly jobless claims decrease modestly
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

(Updates prices)
By K. Sathya Narayanan
Jan 21 (Reuters) - Gold prices eased from a two-week high on
Thursday as investors booked some profit following a rally in
the previous session, while expectations for further stimulus
and a weaker U.S. dollar limited losses.
Spot gold XAU= was down 0.2% to $1,867.56 per ounce at
01:57 p.m. EST (1857 GMT), after hitting its highest since Jan.
8 at $1,874.86 earlier in the day. Bullion had gained 1.7% on
Wednesday.
U.S. gold futures GCv1 settled little changed at $1,865.90
per ounce.
"It is nothing more than some simple profit taking after the
recent rally prompted by expectations for further stimulus
coming from the Biden (administration)," said David Meger,
director of metals trading at High Ridge Futures.
"However, the prospect of further stimulus along with a
weaker dollar continues to support gold in the bigger picture
perspective."
Joe Biden was sworn in as the president of the United States
on Wednesday, with markets focusing on his proposed $1.9
trillion dollar coronavirus stimulus package, which will require
approval from a divided Congress. Gold is seen as a hedge against inflation and currency
debasement, which can be caused by the massive stimulus
measures.
It remained to be seen whether the stimulus would go through
both houses of Congress as quickly as Biden's expectations and
"that's probably one of the reasons why gold hasn't been going
huge", said StoneX analyst Rhona O'Connell.
The dollar .DXY , on the other hand, slipped to a one-week
low against key rivals, making greenback-denominated bullion
cheaper for investors holding other currencies. USD/
Meanwhile, the number of Americans filing new applications
for unemployment benefits decreased modestly last week.
Spot silver XAG= edged 0.1% higher to $25.83 per ounce.
Platinum XPT= rose 1% to $1,120.70, while palladium XPD=
eased 0.2% to $2,366.45.

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