Gold Rises on Uncertainty from US Stimulus By

© Reuters.

By Gina Lee – Gold rose on Friday morning in Asia as disappointing US labor data plunges and uncertainty over the latest US stimulus measures and Brexit talks linger.

they were up 0.23% to $ 1,841.70 at 12:47 am ET (4:47 am GMT). The dollar, which normally moves the opposite of the yellow metal, was lower on Friday.

The United States registered 853,000 claims in the past week, more than the 725,000 in the forecasts prepared by and the 716,000 claims in the previous week. The data, released Thursday, suggested that the number of claims increased as more businesses closed due to the increasing number of COVID-19 cases in the US.

Negotiations between Democrats and Republicans on stimulus measures continue as they compete against the December 11 deadline to avoid a government shutdown. Senate Majority Leader Mitch McConnell has voiced support for Treasury Secretary Steven Mnuchin’s $ 916 billion proposal, emphasizing the need to do “everything we can” to help the economy. However, House Speaker Nancy Pelosi is supporting a $ 908 billion alternative plan, which is still being drafted by a bipartisan group of lawmakers.

On the other side of the Atlantic, the European Central Bank (ECB) rolled out another round of monetary stimulus totaling 500 billion euros ($ 605.19 billion). The ECB will continue its ongoing bond purchase stimulus for € 500 billion to € 1.85 trillion and extend its support program until at least March 2022 from the earliest completion date of mid-2021, it said after from their policy meeting on Thursday.

The Federal Reserve also met for its policy meeting on Thursday.

The UK and the European Union are also working to reach a Brexit trade deal before Sunday’s deadline set by British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen.

Meanwhile, the U.S. Food and Drug Administration (FDA) got a little closer to approving a COVID-19 vaccine on Thursday. A panel of external advisers voted 17 to 4 to support the emergency use of BNT162b2, the COVID-19 vaccine jointly developed by Pfizer (NYSE 🙂 and BioNTech SE (F :), and the FDA is expected to clear emergency use of the vaccine within days. Vaccine distribution and inoculations in the US are expected to begin almost soon after.

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