Gold slides as stocks rally, but still set for weekly gain
By Shreyansi Singh (Reuters) - Gold prices eased on Friday as equities rallied, although dollar weakness and a sharp slowdown in U.S. jobs growth in November spurring hopes of additional stimulus aid set gold on track for its first weekly gain in four
By Shreyansi Singh
(Reuters) - Gold prices eased on Friday as equities rallied, although dollar weakness and a sharp slowdown in U.S. jobs growth in November spurring hopes of additional stimulus aid set gold on track for its first weekly gain in four.
Spot gold was down 0.3% at $1,835.00 per ounce by 10:38 a.m. EST (1538 GMT), having hit its highest since Nov. 23 at $1,847.76 earlier. U.S. gold futures were down 0.2% at $1,837.90.
Dips and pullbacks in gold need to be bought due to negative interest rates across the globe, and the possibility of U.S. stimulus being approved before the end of this year, which would be inflationary, said Michael Matousek, head trader at U.S. Global Investors.
Non-yielding bullion, often seen as a hedge against inflation that is likely to result from the unprecedented stimulus measures, has gained about 3% so far this week.
The U.S. dollar was on course for its worst week since early November, making gold cheaper for holders of other currencies. [USD/]
"Gold prices have support from the dollar weakness and the weaker-than-expected employment data and have held up well despite the acceleration in ETP net redemptions," said Standard Chartered analyst Suki Cooper.
Data earlier on Friday showed the U.S. economy added the fewest workers in six months in November, cementing expectations of more stimulus that lifted the S&P 500 to a record peak. [.N]
"Beyond near-term corrections, a weaker dollar, negative real rates, concerns surrounding inflation and expectations of further fiscal stimulus amid accommodative monetary policy are likely to keep gold price risk skewed to the upside," Cooper added.
A bipartisan, $908 billion coronavirus aid bill drew support in the U.S. Congress on Thursday.
Among other metals, platinum gained 2.9% to $1,059.01 per ounce and palladium rose 1.7% to $2,341.46.
Platinum is used by automakers for catalytic-converter manufacturing to clean vehicle-exhaust fumes.
Silver was steady at $24.07 an ounce and was set to climb about 6% for the week.
(Reporting by Shreyansi Singh and Aaron Saldanha in Bengaluru; Editing by Andrea Ricci)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.