Gold Trades Steady as Markets Await a EU-UK Trade Deal

Gold Trades Steady as Markets Await a EU-UK Trade Deal

Posted Thursday, December 24, 2020 by
Arslan Butt • 1 min read

On Thursday, gold prices are trading somewhat steady as the optimism surrounding a possible Brexit trade deal soon offsets disappointing jobless claims data from the US and Trump’s threat to not sign the latest coronavirus relief bill. At the time of writing, GOLD is trading at a little above $1,876.

Earlier this week, US lawmakers finally reached an agreement on the next round of fiscal stimulus measures worth $900 billion to help the US economy. However, hopes for it to provide support to the ailing US economy were dashed when Trump posted a video demanding that spending on stimulus checks be increased to up to $2,000 from the current proposed level of $600.

Gold prices also enjoyed some support after consumer spending in the US contracted for the first time since the beginning of the pandemic during the month of November. Meanwhile, jobless claims remain high in the US even though the number of fresh claims filed registered a surprising decline during the past week.

For now, however, the market sentiment remains optimistic over reports that Britain and the EU could soon finalize a narrow trade deal, weakening the possibility of a no-deal Brexit. Expectations for a trade deal after several rounds of negotiations are keeping gold prices under pressure.

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