NEW DELHI: Gold futures edged higher while silver futures were trading flat in Friday’s session as concerns over the delays in the US stimulus package, rising unemployment in the world’s largest economy and Brexit overshadowed optimism over ECB stimulus announced in the previous session.
A weak dollar that hovered near a two-and-a-half-year low also pushed bullion prices up. Gold and dollar have an inverse relationship. On MCX, gold futures for February delivery were trading 0.08 per cent higher at 49,114 per 10 grams. Silver futures for February delivery fell 0.02 per cent to Rs 63,516 per 1 kg.
The dollar index was down 0.2 per cent and traded close to 90.5, its lowest since April 2018, making gold cheaper for other currency holders, Reuters reported.
Data showed US weekly jobless claims jumped to a near three-month high, further evidence that rising Covid-19 infections and lack of additional fiscal stimulus were hurting the economy, Reuters reported.
In another development, a proposed $908 billion aid deal all but collapsed after Senate Majority Leader Mitch McConnell said Republican senators won’t support giving $160 billion to state and local governments. Republicans are pressing for a measure that would shield companies from potential coronavirus-related lawsuits, AP reported.
The package would extend unemployment benefits that are due to expire December 26. Without it, more than 9 million people would lose benefits, which would undercut consumer spending, the AP report suggested.
The European Central Bank, meanwhile, rolled out more stimulus measures on Thursday to lift the currency bloc’s economy out of a double-dip recession.