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Gold edges down on vaccine prospects; investors eye stimulus

Published 02/12/2020, 12:16 pm
Updated 02/12/2020, 12:24 pm
© Reuters.
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Dec 2 (Reuters) - Gold prices edged lower on Wednesday on growing progress over a coronavirus vaccine to aid a swift global economic recovery, with investors eyeing the possibility for further U.S. stimulus.

FUNDAMENTALS

* Spot gold XAU= fell 0.1% to $1,813.75 per ounce by 0050 GMT, after jumping more than 2% in the previous session.

* U.S. gold futures GCv1 fell 0.1% to $1,816.90.

* U.S. officials on Tuesday unveiled plans to begin vaccinating millions of Americans against COVID-19 as early as mid-December, as infections and hospitalizations in continue to soar. Moderna and Pfizer-BioNTech are in a tight race to launch their COVID-19 vaccines in Europe after both applied for emergency European Union approval on Tuesday. Top Senate Republican Mitch McConnell said on Tuesday the U.S. Congress should include a fresh wave of coronavirus stimulus in a $1.4 trillion spending bill, with top U.S. economic officials also pressing Congress for more aid to small businesses. The emergency lending programs the Federal Reserve set up during the pandemic could be revived quickly after they expire at year-end, a senior New York Federal Reserve official said on Tuesday. But both Chicago Federal Reserve Bank President Charles Evans and San Francisco Fed President Mary Daly agreed on Tuesday that there was no immediate need for further monetary stimulus, with Chicago's Evans calling for more fiscal support. Gold is viewed as a hedge against inflation likely to result from large stimulus measures.

* Holdings of the SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, fell 0.3% to 1,191.28 tonnes on Tuesday from 1,194.78 tonnes on Monday. Silver XAG= fell 0.5% to $23.89 an ounce , while platinum XPT= dropped 0.6% to $994.00 and palladium XPD= was down 0.4% at $2,397.00.

DATA/EVENTS (GMT)

1000 EU

Oct. Unemployment Rate

1900 US

Federal Reserve issues

Beige Book of economic condition

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