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Gold dips on firmer dollar, COVID-19 vaccine hopes

Published 19/11/2020, 12:18 pm
© Reuters.
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Nov 19 (Reuters) - Gold fell on Thursday in early Asian trade as the dollar gained some ground and progress in COVID-19 vaccine development dented the precious metal's appeal.

FUNDAMENTALS

* Spot gold XAU= fell 0.1% to $1,869.86 per ounce by 0103 GMT, while U.S. gold futures GCv1 were down 0.3% at $1,868.70.

* After falling for five straight sessions, the dollar index .DXY was up 0.2%, making gold expensive for holders of other currencies. USD/

* Pfizer (NYSE:PFE) PFE.N announced on Wednesday that the final results from the late-stage trial of its COVID-19 vaccine showed it was 95% effective. President-elect Joe Biden expressed hope on Wednesday that Republicans in the U.S. Congress would be more inclined to move forward on COVID-19 relief legislation after President Donald Trump leaves office in January. Forty-one U.S. states have reported daily record increases in COVID-19 cases in November, 20 have registered new all-time highs in coronavirus-related deaths from day to day, and 26 have reported new peaks in hospitalizations, according to the Reuters tally. The U.S. economy is now affected more by swings in COVID-19 infections than it is by restrictions on certain activities, and a surge in cases could slow growth, New York Federal Reserve Bank President John Williams (NYSE:WMB) said on Wednesday. Britain and the European Union are in the last moments to reach a trade deal that would regulate their relationship after Britain's transition period ends on Jan 1, 2021, the EU's Trade Commissioner Valdis Dombrovskis said on Wednesday. Holdings in SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, fell 0.60% to 1,219.00 tonnes on Wednesday. Silver XAG= fell 0.3 % to $24.24 per ounce. Platinum XPT= eased 0.5% to $937.30, while palladium XPD= was down 0.7% at $2,311.91.

DATA/EVENTS (GMT)

1330 US

Initial Jobless Clm

Weekly

1330 US

Philly Fed Business Indx

Nov

1500 US

Existing Home Sales

Oct

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