Investors Dial Back Stimulus-related Expectations in Gold

Gold prices gave up early gains on Friday after hitting a nearly two-month low in the previous session. Weekly decline was the largest in six weeks.
Spot gold price dropped 0.2% to $ 1,864.21 per troy ounce. Weekly decline of 4.1% pushed the price to the lowest level since mid-August as chances for even dovish Fed stance diminished.
Democrats in the US House of Representatives are working on $ 2.2 trillion stimulus measures that could be voted on next week, a senior US lawmaker said Thursday. But chances to get the deal done since the GOP is ready to discuss much smaller package, around $1 tn. But the threat of a second Covid-19 outbreak and pressure from the Fed is expected to speed up the talks.
Palladium dropped 1.39% to $ 2.195.61 an ounce, while silver slipped 1.07% to $22.96 an ounce. The platinum price dropped 0.2% to $ 847.2.
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