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Gold set for worst week in over a month on dollar strength

Friday,   25-Sep-2020   08:55 AM (IST)

Gold inched lower on Friday, pressured by a firm dollar, and was on track for its worst week in over a month, although renewed hopes of more U.S. stimulus measures limited the decline. Spot gold fell 0.2% to $1,864.47 per ounce by 0113 GMT. Prices are down 4.4% so far for the week. U.S. gold futures were down 0.4% to $1,870.30. The dollar index is up 1.5% for week, its best since early-April. A firmer dollar makes bullion more expensive for holders of other currencies. As much as $380 billion from the U.S. Congress' last big coronavirus aid package is unused and could help households and businesses if lawmakers approve, Federal Reserve Chair Jerome Powell and Treasury Secretary Steven Mnuchin said on Thursday. Democrats in the U.S. House of Representatives are working on a $2.2 trillion coronavirus package that could be voted on next week. Global central banks have rolled out massive stimulus and slashed interest rates to near zero to counter the economic damage from the pandemic, helping gold climb over 20% this year. The number of Americans filing new claims for unemployment benefits unexpectedly increased last week, supporting views the economic recovery was running out of steam. China's monthly net gold imports via Hong Kong edged lower in August, data showed, although a slight improvement in domestic demand pushed total imports to a five-month high. China's Shanghai Gold Exchange said investors should prepare risk contingency plans, raise awareness of risks, manage positions and invest rationally amid price fluctuations in gold and silver prices and ahead of long national holidays. Silver fell 1.1% to $22.95 per ounce, platinum was down 0.3%, to $846.72 and palladium was flat
at $2,226.44.