PRECIOUS METALS-Gold heads to extend weekly low due to doubts about stimuli

By Eileen Soreng Nov 20 (.) – Gold was on track for its second weekly decline on Friday, as promising COVID-19 vaccine trial results and calls from US Treasury Secretary Steven Mnuchin to end the Federal Reserve’s pandemic relief programs made the bullion less attractive. * The spot gold price was trading at $ 1,867.91 an ounce, up 0.03% at 1026 GMT, but was down 1.1% for the week. * US gold futures were up 0.2% at $ 1,865.40 an ounce. * In a letter, Mnuchin told Fed Chairman Jerome Powell that the $ 455 billion designated by the Treasury under the CARES Act should actually be left at the disposal of Congress, creating uncertainty about the future of the stimulus programs. monetary. * “If the Fed starts cutting its assistance program, that could be a headwind for gold again (…) The argument that monetary stimulus will be around too long, which has supported gold, could weaken.” said Lachlan Shaw, head of commodities at National Australia Bank. * In a sample of the environment, gold holdings in the SPDR Gold fund reflected outflows of around 40 tonnes so far in November. * Investors withdrew $ 4 billion in gold, the largest exodus in bullion history, amid the rise in risk assets over the past week, the BofA said on Friday. * Among other precious metals, silver was up 0.3% at $ 24.17 an ounce; platinum was up 0.6% at $ 957; and palladium was up 0.3% at $ 2,332.50. (Report by Eileen Soreng in Bengaluru. Edited in Spanish by Marion Giraldo)