Gold edged up on Friday as the dollar held near a two-and-a-half-year low, offsetting concerns over delays in a U.S. coronavirus package. Spot gold rose 0.1% to $1,837.21 per ounce by 0531 GMT. U.S. gold futures gained 0.2% to $1,841.50.
“The correlation between gold and dollar has returned because markets have more or less priced in the vaccine optimism,” said Margaret Yang, a strategist at DailyFX.
Gold needs a very strong catalyst to break its descending trend and that could be in the form of a dovish Federal Reserve, a larger than expected U.S. fiscal stimulus bill or the unlikely failure of vaccines, she added.
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