2020.12.3019:08:00UTC+00Gold Futures Settle Higher As Dollar Tumbles To Near 3-year Low

Gold futures settled higher on Wednesday, as the dollar slipped to near three-year lows amid optimism about more stimulus from U.S. policymakers.

The dollar index, which fell to 89.56, staged a modest recovery subsequently and was last seen at 89.69, down 0.34% from previous close.

Gold futures for February ended up by $10.50 or about 0.6% at $1,893.40 an ounce.

Silver futures for March ended higher by $0.356 at $26.573 an ounce, while Copper futures for March settled at $3.5490 per pound, down $0.0065 from previous close.

In economic news, a report from the National Association of Realtors showed a continued decrease in U.S. pending home sales in the month of November. The data said NAR's pending home sales index eased by 2.6% to 125.7 in the month, after falling by 0.9% to 129.1 in October. Economists had expected pending home sales to come in unchanged.

A report released by MNI Indicators showed an unexpected acceleration in the pace of growth in Chicago-area business activity in the month of December. MNI Indicators said its Chicago business barometer rose to 59.5 in December from 58.2 in November. Economists had expected the barometer to dip to 57.0.

Reports say the volume of various COVID metrics in the United States rebounded on Wednesday, with number of deaths and total hospitalizations in the country rising to new highs.

The authorities have also confirmed the first known case of the new Covid-19 variant in the United States. According to experts, the new variant is considered to be more transmissible than the previous strains of coronavirus.