Gold gains as US jobs data remain gloom
- 07 Dec 2020
Gulf Today Report
Gold advanced on Monday as US job data increased hope for more fiscal stimulus outweighing optimism for a coronavirus vaccine.
Spot gold prices rose 0.2% to $1,841.93 per ounce by 0554 GMT, while US gold futures were up 0.2% at $1,844.20.
According to Stephen Innes, chief global market strategist at financial services, "softer jobs growth and tighter social mobility restrictions ostensibly lower the hurdle for a policy response from (US) Congress."
US lawmakers are working towards concluding a new fiscal stimulus of $908 billion.
The size of the package is likely to be discouraging for the gold market, added Innes.
READ MORE
Dubai to slash water and electricity bills
Government entities showcase their latest innovations at Gitex
Hamdan opens 40th edition of GITEX
Gold serves as a shield against inflation which could happen due to large stimulus.
Gold had limited gain due to Britain preparing to start vaccinating its residents against COVID-19 this week.
In a note by Edward Meir, an analyst at ED&F Man Capital Markets, although vaccine news serves as a disadvantage to the gold, it won’t stop authorities from pursuing easier monetary and fiscal policies.
Gold has resistance at $1,850 an ounce, with a close above that pivot area setting the scene for a test of the resistance line at $1,920 an ounce, Jeffrey Halley, a senior market analyst at OANDA said in a note.
