NEW YORK: Gold prices slipped on Friday after three days of gains as the dollar's rebound offset support from hopes of a US fiscal stimulus package. Spot gold was down 0.1% at $1,883.39 per ounce by 12:03 p.m. ET (1703 GMT). US gold futures fell 0.1% to $1,889.30 per ounce.
With coronavirus infections roaring back to new record highs across the United States, pressure mounted on lawmakers to deliver more relief aid in time for a crucial Friday deadline.
"Gold has attached itself entirely to the negotiations on the stimulus package. ... The market will rally if there's positive momentum towards reaching a stimulus deal, and if there's any indication of a delay gold pulls back," said Jeffrey Sica, founder of Circle Squared Alternative Investments.
"Once stimulus gets approved in its entirety I anticipate gold will rally substantially because it's a massive stimulus package."
The precious metal was still up about 2.5% for the week and on track for a third straight weekly gain.
Banking on US Federal Reserve's pledge to continue pouring cash into financial markets and keep interest rates low until the US economic recovery is secure, gold hit a peak since Nov. 16 on Thursday.
"The primary focus has been the expectations that we're going to get a stimulus deal," said Edward Moya, senior market analyst at OANDA.
Silver slipped 0.8% to $25.84 an ounce, platinum was down 1.2% at $1,032.28, while palladium gained 0.3% at $2,347.25.
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