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Gold falls, set for worst month in 4 years on vaccine hopes

Published 30/11/2020, 12:15 pm
© Reuters.
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Nov 30 (Reuters) - Gold slipped on Monday as upbeat equities fuelled by optimism over a coronavirus vaccine-led economic rebound offset a weaker dollar, putting the bullion on course for its worst month in four years.

FUNDAMENTALS

* Spot gold XAU= fell 0.3% to $1,782.72 per ounce by 0049 GMT. U.S. gold futures GCv1 was down 0.1% at $1,778.10.

* Gold is down 5.1% in November, as growing optimism over a COVID-19 vaccine and greater U.S. political stability under Joe Biden's incoming administration sparked a sell-off in the metal and favoured traditionally riskier assets.

* Vaccine optimism and bets for more monetary easing ahead of testimony in Congress from U.S. Federal Reserve Chairman Jerome Powell this week, helped to push the dollar to a more than two-year low and boosted world shares. USD/ MKTS/GLOB

* U.S. health authorities will hold an emergency meeting to recommend a coronavirus vaccine for healthcare professionals and people in long-term care facilities, while Britain is set to approve BioNTech SE 22UAy.DE and Pfizer Inc (NYSE:PFE)'s PFE.N COVID-19 vaccine. Although U.S. President Donald Trump pledged to continue his legal fight to overturn the Nov. 3 election results, his comments in a Fox News telephone interview suggested he was growing resigned to his Democratic opponent moving into the White House on Jan. 20. Face-to-face negotiations between the UK and the European Union over a trade deal restarted on Saturday, in a last-ditch attempt to find agreement with just five weeks to go before their current relationship ends. Gold is used as a hedge against inflation, political and economic uncertainties.

* Physical gold demand in India remained healthy as a drop in prices to a near five-month low encouraged retail consumers and jewellers to raise purchases amid wedding season. Silver XAG= fell 0.9% to $22.50 per ounce, while platinum XPT= rose 0.1% to $964.71 and palladium XPD= was up 0.1% at $2,426.31.

DATA/EVENTS (GMT)

1300 Germany Nov. CPI Prelim YY

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