Gold drops amid doubts about the US stimulus package

Gold fell today, Wednesday, as caution dominated investors due to doubts about progress in the stimulus package in the United States, while reports of developments regarding the Covid-19 vaccine added pressure.

Spot gold fell 0.3% to $ 1808.67 an ounce after an increase of more than 2% on Tuesday, which was the largest jump in nearly a month.

Gold in US futures fell 0.3% to $ 1813.30.

Republican Senate Majority Leader Mitch McConnell said the US Congress should introduce a new $ 1.4 trillion stimulus spending package linked to the second wave of coronavirus.

Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi held talks on stimulus yesterday for the first time since the US election.

Adding to the pressure on the metal, there were reports that US officials were targeting to start vaccinating millions of Americans against Covid-19.

Of the other precious metals, silver fell 1.4% to $ 23.66 an ounce, platinum fell 1.5% to $ 985.29 an ounce, and palladium fell 0.4% to $ 2396.91.