Gold extended losses for the fourth consecutive day ahead of week-end trading as markets were shackled by uncertainty about the US Covid-19 stimulus package and uncertainty about surging equities around the world.
The precious metal was trading weakly at around $ 1,867 an anun price, while gold was trading at $ 1,865 an aun (3.00 pm Malaysian time).
The market initially welcomed reports that Senate Majority Leader Mitch McConnell agreed to restart talks with Democrats over the pre-pending new coronavirus stimulus package due to choice.
This can be seen from the increase in gold in the New York session which also witnessed the decline in US dollars.
However, the decision of the US Treasury's Loyalty Officer, Steven Mnuchin, returned to exercising market expectations after he decided not to continue the CARES Act anxiety loan assistance to the Federal Reserve (Fed).
The yellow metal will usually be impressed by this report which will surely lead to a strengthening of the greenback dollar. However, because the market also expects new stimulus from Congress, it helps support gold rather than lower losses.
