Gold settles lower to start last week in 2020, succumbing to bounce in stocks, U.S. dollars

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Gold futures finished slightly lower Monday, snapping a two-session win streak, giving up early gains in a choppy trading session as investors deemed some firmness in the U.S. dollar and a global stock rally sufficient headwinds for bullions. Gold prices had briefly scored a modest bounce toward its highest level in about six weeks intraday after President Donald Trump signed a coronavirus relief package over the weekend, ending a brief standoff between the White House and Congress. Bullion is viewed as a hedge against devaluation of dollars and large deficits being run up by governments to curb the harmful economic effects of the COVID-19 pandemic. However, some metals dealers believe that the fiscal-spending package, which includes around $900 billion in relief for American companies and workers, was largely priced into gold’s recent advance toward a psychological round-number level at $1,900. Gains for the Dow Jones Industrial Average and the S&P 500 index also may be tempering enthusiasm for haven assets as those perceived as risky ride higher in 2020’s final trading week. February gold finished off $2.80, or 0.1%, to end at $1,880.40 an ounce.
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