Gold inches higher on hopes of further US stimulus

Gold prices edged higher on Wednesday as grim US consumer and housing data bolstered hopes for further stimulus to support an economic recovery from the pandemic-induced slump.

FUNDAMENTALS

Spot gold rose 0.2% to $1,863.83 per ounce by 0027 GMT, while US gold futures fell 0.1% to $1,868.10.

A new coronavirus strain in the UK has caused several countries around the world to shut their borders to Britain and drugmakers to scramble to test their COVID-19 vaccines against it.

Weekly COVID-19 infections rose by the highest since the pandemic began, with the United States reporting the most number of cases for any single country, the World Health Organization said on Tuesday.

US Congress passed a massive COVID-19 aid and government funding package overnight aimed at bolstering the nation's battered economy.

Data on Tuesday showed US consumer confidence dropped to a four-month low in December, while US existing home sales also fell in November.

The US economy grew at a record pace in the third quarter, the Commerce Department said, revising up its estimate for gross domestic product.

US President-elect Joe Biden said his administration would put forward another COVID-19 relief package next year, including a new round of stimulus payments.

The European Union is ready to continue negotiations with Britain past the end of the year, sources said after an update on Brexit by the bloc's negotiator, Michel Barnier.

SPDR Gold Trust the world's largest gold-backed exchange-traded fund, said its holdings fell 0.20% to 1,167.53 tonnes on Tuesday from 1,169.86 tonnes on Monday.

Silver rose 1% to $25.38 an ounce. Platinum rose 0.5% to $1,007.11 and palladium gained 0.2% to $2,318.12.