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Gold eases as vaccine rollouts expand; Fed meet eyed

Published 16/12/2020, 12:27 pm
© Reuters.
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Dec 16 (Reuters) - Gold prices inched lower on Wednesday as rapid progress in vaccine rollouts sparked hopes of a swift economic revival, with investors keeping a close watch on stimulus talks and the Federal Reserve's policy statement.

FUNDAMENTALS

* Spot gold XAU fell 0.1% to $1,852.01 per ounce by 0100 GMT after jumping 1.4% in the previous session. U.S. gold futures GCv1 were little changed at $1,855.60.

* Moderna Inc's MRNA.O COVID-19 vaccine appears set for regulatory authorisation in the United States this week, while rollouts of the country's newly approved vaccine were expanded. Across the Atlantic, Europeans are set to start getting coronavirus vaccines before the new year after the regional drug regulator accelerated its approval process. Top U.S. congressional leaders agreed to meet again on Tuesday evening after an initial round of talks, to try to finalise a government funding bill and end a standoff on coronavirus relief, aides said. The U.S. Federal Reserve is expected to keep interest rates pinned near zero and to signal where rates are headed in the coming years at it's final policy meet of the year. The Fed's policy statement is due at 1900 GMT. Many analysts also expect new guidance on how long the Fed will keep up its massive bond-buying program.

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

* Holdings in the SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, fell 0.10% to 1,170.15 tonnes on Tuesday. Silver XAG= dropped 0.1% to $24.46 per ounce. Platinum XPT= fell 0.2% to $1,034.25 and palladium XPD= was down by 0.1% at $2,315.09.

DATA AHEAD(GMT) 0900 Eurozone Dec. Flash Manufacturing PMI 0900 Eurozone Dec. Flash Services PMI 1330 U.S. NOV Retail Sales 1445 U.S Dec. Flash Services PMI 1445 U.S Dec. Flash Manufacturing PMI

1900 U.S. FOMC policy statement

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