The yellow metal gold traded stable on Thursday amid a depreciation of the US dollar as investors' expectations of progress in negotiations on a new US stimulus package continued to rise.
Spot gold traded up 0.5% at $ 1,895 per ounce, while gold futures strengthened $ 1,901 per ounce (3.45pm Malaysian time).
The precious metal previously soared above the $ 1,900 ounce price level after positive developments in new US stimulus measures during the New York session.
US Treasury Secretary Steven Mnuchin's statement that they have made great strides in negotiations has raised market expectations that an agreement can be reached.
In addition, both parties have reached an agreement for direct payment assistance to Americans.
Although the Trump administration does not seem to accept the proposal for a $ 2.2 trillion stimulus plan by Democrats, the market remains confident that both sides will reach an agreement even with the help of only $ 1.5 trillion as proposed by Republicans.
The dollar index declined 0.2% against most major currencies to a one-week low, making gold cheaper for other currency holders.
