10.12.202009:18:00UTC+00Gold Dips As US Stimulus Talks Drag On

Gold prices eased on Thursday and the dollar firmed up on safe-haven support amid increasing uncertainties over U.S. stimulus talks and Brexit negotiations.

Spot gold dropped 0.4 percent to $1,832.13 per ounce, after having fallen as much as 2.5 percent on Wednesday. U.S. gold futures were down 0.2 percent at $1,835.35.

There is little progress in U.S. stimulus talks, with the House of Representatives approving a one-week extension of federal government funding to give more time for talks about a broader coronavirus relief package.

But, Senate Majority Leader Mitch McConnell said told reporters that Congressional lawmakers were still looking for a way forward on Covid-19 aid.

After an expected breakthrough failed to materialize in Brussels, British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen gave themselves until Sunday to decide on the future of post-Brexit negotiations.

Bank of England Governor Andrew Bailey has warned a no-deal Brexit would cause longer-term damage to Britain's economy than the Covid-19 pandemic.

Dampening some of the optimism over Covid-19 vaccine rollout, Britain's medicine regulator said anyone with a history of anaphylaxis to a medicine or food should not get the Pfizer-BioNTech Covid-19 vaccine.

There had been two reports of anaphylaxis and one report of a possible allergic reaction since rollout began.