Gold dropped below $1 900 an ounce, heading for a weekly loss, as the dollar turned higher and equity markets rose.
Billion slipped as much as 1.8% in London, as a gauge of the dollar spiked from the day’s low, while stock markets were supported amid hopes for more stimulus. The two Democratic wins in Georgia’s Senate runoffs this week give US President-elect Joe Biden full control of Congress, potentially paving the way for him to push his legislative agenda forward.
Bullion’s had a mixed start to the year after posting the biggest annual advance in a decade. While there’s still plenty of tailwinds - a raging pandemic, uncertainty over the economic recovery and rising inflation expectations, to name a few - gains in benchmark Treasury yields this week weighed on the non-interest bearing asset.
Spot gold dropped 1.3% to $1 890 an ounce by 8:26 in London. Silver, platinum and palladium also declined.