Gold Futures Settle Modestly Higher
Gold prices came off one-week lows and the most active gold futures contract settled slightly higher on Thursday on renewed optimism about a U.S. fiscal stimulus.
Also, data showing a lower than expected drop in U.S. jobless claims raised prospects of the Federal Reserve continuing its accommodative monetary policy for a longer duration.
After calling off negotiations over a broader relief package, Trump suggested he was open to piecemeal spending measures for airlines, small businesses and stimulus checks of $1,200 for individuals.
However, gains were limited as House Speaker Nancy Pelosi today rejected the idea of a standalone bill for aid carriers without a larger stimulus bill.
Pelosi also noted that negotiations continue over a broader bill, saying, “We’re at the table. We want to continue the conversation. We’ve made some progress, we’re exchanging language.”
A somewhat subdued dollar contributed a bit to gold’s uptick. The dollar index, which rose to 93.78 after early weakness, retreated later and was last seen at 93.61, down slightly from previous close.
Gold futures for December ended up $4.30 or about 0.2% at $1,895.10 an ounce.
Silver futures for December closed lower by $0.020 or 0.08% at $23.876 an ounce.
Copper futures for December settled at $3.0420 per pound, gaining $0.0090 or 0.3% for the session.
On the U.S. economic front, the Labor Department released a report showing initial jobless claims came in above estimates in the week ended October 3rd.
The Labor Department said initial jobless claims edged down to 840,000, a decrease of 9,000 from the previous week’s revised level of 849,000.
Economists had expected jobless claims to dip to 820,000 from the 837,000 originally reported for the previous week.
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