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Gold rises as dollar softens; U.S. Senate vote on increased aid eyed

Published 29/12/2020, 12:32 pm
©  Reuters
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Dec 29 (Reuters) - Gold prices rose on Tuesday as the dollar eased, while investors kept a close watch on a U.S. Senate vote on increased pandemic aid checks to individuals.

FUNDAMENTALS

* Spot gold XAU= rose 0.5% to $1,880.06 per ounce by 0108 GMT, after closing slightly lower in the last session. On Monday, the metal had climbed as much 1.3% after the passage of a near $900 billion U.S. stimulus package.

* U.S. gold futures GCv1 were up 0.1% to $1,882.20.

* Against a basket of currencies, the dollar .DXY dipped, raising gold's appeal to other currency holders. USD/

* The Democratic-led U.S. House of Representatives voted in favour of President Donald Trump's demand for $2,000 COVID-19 relief checks on Monday, sending the measure on to an uncertain future in the Republican-controlled Senate. Gold, seen as a hedge against inflation, has gained more than 24% this year, largely driven by a raft of stimulus measures unleashed to mitigate the impact of the pandemic.

* The distribution of an initial 200 million doses of the COVID-19 vaccine developed by Pfizer (NYSE:PFE) PFE.N and BioNTech 22UAy.DE across the European Union will be completed by September. Hedge funds and money managers raised bullish positions in COMEX gold and silver contracts in the week to Dec. 21, the U.S. Commodity Futures Trading Commission (CFTC) said on Monday. Holdings in SPDR's Gold Trust GLD , the world's largest gold-backed exchange-traded fund, rose 0.2% to 1,169.86 tonnes on Monday from 1,167.53 tonnes on Thursday. China's net gold imports via Hong Kong rebounded about 82% in November after a plunge in October, Hong Kong Census and Statistics Department data showed on Monday. Silver XAG= rose 1.3% to $26.50 an ounce. Platinum XPT= climbed 0.7% to $1,038.46 and palladium XPD= gained 0.8% to $2,342.79.

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