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PRECIOUS-Gold flat as U.S. stimulus hopes offset vaccine optimism

Published 07/12/2020, 12:32 pm
Updated 07/12/2020, 12:36 pm
© Reuters.
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Dec 7 (Reuters) - Gold prices were little changed in early Asian trade on Monday, as hopes of a U.S. fiscal stimulus package being passed this week countered downward pressure from optimism around COVID-19 vaccines roll-outs.

FUNDAMENTALS

* Spot gold XAU= was flat at $1,836.91 per ounce by 0102 GMT. U.S. gold futures GCv1 were also little changed at $1,840.70.

* Britain is preparing to become the first country to roll out the Pfizer/BioNTech COVID-19 vaccine this week. A gauge of Asian shares hit a record high. MKTS/GLOB

* Talks aimed at reaching a fresh coronavirus relief package gathered momentum in the U.S. Congress on Friday, as a bipartisan group of lawmakers worked to put the finishing touches on a new $908 billion bill. Highlighting the extent of the economic slowdown caused by the pandemic, data showed on Friday the U.S. economy added the fewest workers in six months in November. Gold tends to benefit from stimulus measures as it raises the prospect of inflation which bullion is used to hedge against.

* Britain and the European Union will make a last-ditch attempt to strike a post-Brexit trade deal this week, with probably just days left for negotiators to avert a chaotic parting of ways at the end of the year. SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings fell 0.6% to 1,182.70 tonnes on Friday. GOL/ETF

* Speculators raised their bullish positions in COMEX gold and silver contracts in the week to Dec. 1, data showed. CFTC/

* Silver XAG= fell 0.1% to $24.13 per ounce and platinum XPT= eased 0.2% to $1,052.86, while palladium XPD= gained about 1% to $2,366.60.

DATA/EVENTS (GMT)

0700 Germany Oct. Industrial Output

0830 UK Nov. Halifax House Prices

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