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Gold eases as vaccine roll out counters U.S. stimulus optimism

Published 14/12/2020, 12:28 pm
© Reuters.
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Dec 14 (Reuters) - Gold eased on Monday as the roll out of coronavirus vaccines in the United States lifted risk sentiment, offsetting support from hopes for more U.S. economic stimulus and a weaker dollar.

FUNDAMENTALS

* Spot gold XAU= fell 0.2% to $1,834.94 per ounce by 0053 GMT, while U.S. gold futures GCv1 eased 0.2% to $1,840.70.

* The first shipments of COVID-19 vaccine began on Sunday, after a U.S. regulator approved Pfizer Inc (NYSE:PFE) PFE.N and BioNTech SE BNTX.O 's vaccine. The text of a $908 billion bipartisan COVID-19 relief plan is set to be released as early as Monday and will be split into two packages in a bid to win approval, a person briefed on the matter said. The U.S. dollar shed 0.2% ahead of the U.S. Federal Reserve's two-day meeting starting on Tuesday, where policymakers are expected to increase purchases of longer-dated Treasuries to contain a rise in yields. USD/

* Gold is seen as a hedge against inflation and currency debasement.

* London and Brussels agreed on Sunday to "go the extra mile" in coming days to try to reach a trade agreement, even as British Prime Minister Boris Johnson said both parties were very far apart on key issues and no deal Brexit was a possibility. Holdings in SPDR's Gold Trust GLD , the world's largest gold-backed exchange-traded fund, fell 0.32% to 1,175.99 tonnes on Friday from 1,179.78 tonnes on Thursday. Hedge funds and money managers raised their bullish positions in COMEX gold and silver contracts in the week to Dec. 8, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. Silver XAG= was little changed at $23.90 an ounce, while platinum XPT= gained 0.6% to $1,015.03 and palladium XPD= rose 0.4% to $2,327.57.

DATA AHEAD(GMT) 0630 India Nov. WPI Inflation

1000 EU

Oct. Industrial Production

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