Gold Set to Post Third Consecutive Weekly Gain
Arslan Butt • 1 min read
Gold prices are sliding lower early on Friday but are all set to register a gain for the third consecutive week, amid prevailing uncertainties about the ongoing coronavirus pandemic, Brexit talks and negotiations on the coronavirus relief package in the US. At the time of writing, GOLD is trading at a little above $1,880.
The next round of fiscal stimulus measures to prop up the US economy are yet to be finalized, and with time running out for the government shutdown deadline, there is a possibility of a smaller package being approved as a stopgap arrangement. Expectations for a smaller than expected relief package have dented the safe haven appeal of gold in markets for now.
Meanwhile, gold prices have also come under pressure over rising hopes that the US FDA could grant emergency approval for rollout across the country. So far, the US has already authorized the use of Pfizer’s COVID-19 vaccine, but the addition of one more vaccine could speed up the rollout.
Gold, however, enjoys support from ongoing uncertainties related to Brexit talks between Britain and the EU. With the transition period deadline looming, there are increased fears of a no-deal Brexit after British PM Boris Johnson stated that there needs to be a significant shift in the EU’s stance for talks to progress.