Gold traded flat to slightly higher on Friday, but was on track for a weekly loss in the wake of promising Covid-19 vaccine trials and news of the U.S. Treasury ending emergency loan programs.
Spot gold edged up 0.1 percent to $1,867.70 per ounce but was on track for a loss of about 1 percent for the week. U.S. gold futures were up 0.2 percent at $1,866.10.
Data from AstraZeneca and Oxford University showed their potential Covid-19 vaccine produced a strong immune response in older adults. Researchers expect to release late-stage trial results by Christmas.
Treasury yields rose and the dollar edged higher after a rare show of discard between U.S. Treasury Secretary Steven Mnuchin and Federal Reserve Chair Jerome Powell over releasing funds to further shore up the economy.
The U.S. Treasury Department has asked the Federal Reserve to return unspent money allocated under the CARES Act to Congress, prompting criticism from the central bank and adding to market anxiety about broader economic growth.
The Fed responded to the decision in a rare public statement, saying it would prefer that the full suite of emergency facilities established during the coronavirus pandemic continue to serve their important role as a backstop for the still-strained and vulnerable economy.
People familiar with the decision say that either Mnuchin or a new Treasury secretary from the Biden administration may decide to renew emergency loan programs.