Gold is dropping from its 3-week high
Gold fell from its highest level in three weeks, as the dollar recouped some of its losses after a new US rescue package to alleviate the repercussions of the Corona virus faced some opposition.
Spot gold fell 0.1% to 1927.11 dollars an ounce by 06.29 GMT, after reaching its highest level since September 21 at 1932.69 dollars earlier in the session.
And US gold futures rose 0.5% to 1934.70 dollars an ounce.
"The dollar index recovered slightly, which put pressure on the precious metal," said Margaret Yang, analyst at the "Daily Fix", which covers trading currencies, commodities and indices.
But she added, "the technical trend has turned to the upside in the near term, and very soon, it may test the main resistance level of $ 1942.
The dollar index settled and is trading below its three-week high against its rivals, after negotiations over a US stimulus package faced opposition, while the yuan retreated after the Chinese central bank took action seen as aimed at limiting the currency's strength.
Gold is considered a hedge against inflation and currency depreciation, and the yellow metal has gained more than 27% since the beginning of this year, with the support of unprecedented stimulus measures globally to mitigate the economic repercussions of the "Covid-19" pandemic.
As for the other precious metals, silver gained about 1% to $ 25.36 an ounce, while palladium fell 0.1% to $ 2437.79, while platinum rose 0.2% to $ 887.57.
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