NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

PRECIOUS-Gold falls 1% as U.S. vaccine rollout boosts economic outlook

Published 14/12/2020, 10:00 pm
© Reuters.
XAU/USD
-
XAG/USD
-
GC
-
SI
-
PA
-
PL
-

(Adds analyst comments, updates prices)

* European shares rise on Brexit talks extension, vaccine rollout

* Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa

By Asha Sistla

Dec 14 (Reuters) - Gold retreated 1% on Monday as optimism for a faster economic recovery got a fillip from the imminent rollout of COVID-19 vaccines in the United States, but hopes for further fiscal and monetary stimulus limited bullion's losses.

Spot gold XAU= fell 0.7% to $1,825.50 per ounce by 1315 GMT, while U.S. gold futures GCv1 slipped 0.8% to $1,829.50.

"The first (vaccine) announcement had the biggest effect and people are less surprised as new announcements come through, so it probably has had a bit of an impact (on gold)... but because it's not the first one, it's less dramatic," said StoneX analyst Rhona O'Connell.

European stocks were underpinned by hopes of a global economic recovery, amid an extension of Brexit trade talks, plus a COVID-19 vaccination campaign that is set to begin in the United States as early as Monday. .EU gold's losses were reports of a $908 billion U.S. COVID-19 relief plan that could be introduced as early as Monday. benefits from its appeal as a hedge against inflation that could result from the unprecedented stimulus unleashed in 2020.

Investors now await the U.S Federal Reserve's two-day policy meeting starting on Tuesday. USD/

"Overall (the Fed) will provide a kind of indication that more support will come if the economy needs it, and that would be music to the ears of stock market and probably gold investors as well, because with the potential for more support, the dollar should remain undermined," said Fawad Razaqzada, market analyst with ThinkMarkets.

"But if they (the Fed) are expecting a massive economic rebound because of the vaccine rollouts then investors will interpret that as the Fed being more hawkish...that will not be good news for gold."

Silver XAG= was down 0.1% to $23.89 an ounce, while platinum XPT= gained 1% to $1,019.06 and palladium XPD= remained unchanged at $2,318.60.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.