Gold prices pared gains on Monday as the dollar NSE 1.93 % recovered losses and stock markets rallied after U.S. President Donald Trump signed a long-awaited pandemic aid bill, while liquidityremained low on account of the holiday season.
Spot gold was little changed at $1,877.20 per ounce by 1301 GMT, having earlierrisen as high as $1,900.04 an ounce. U.S. gold futures were down 0.2% to $1,878.70.
“I think you’re seeing some profit-taking coming into the end of the year,” said independent analyst Robin Bhar.
“There are a significant amount of people being vaccinated with the first dosage and there are plans to widen that, and we are hearing similar stories around the world. This could be a reason why gold is being capped at $1,900.”
Pfizer is expected to complete distribution of an initial 200 million doses of the COVID-19 vaccine to the European Union by September, a spokesman for the EU Commission said on Monday.
Futures tracking the S&P 500 and the Nasdaq were at record levels after Trump signed into law a $2.3 trillion pandemic aid package, restoring unemployment benefits to millions of Americans.
Markets in Britain remained closed on Monday for the Boxing Day holiday.
Gold earlier hit its highest since Dec. 21 as the dollar index slipped to a one-week low, lifting bullion’s appeal for other currency holders.
“Gold prices found support just below $1,800 per ounce earlier, and it moved below the 200-day moving average and now it’s above again – so that gives a bit more optimism on the outlook for at least the start of 2021,” said ABN Amro analyst GeorgetteBoele.
Silver was up 1.9% at $26.34 an ounce, after hitting a one-week peak of $26.75 earlier in the session. Platinum climbed 1.2% to $1,035.55 and palladium gained 1.2% to $2,377.38.