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

PRECIOUS-Gold falls as vaccine rollouts lessens safe-haven demand

Published 14/12/2020, 02:51 pm
© Reuters.
XAU/USD
-
XAG/USD
-
PFE
-
GC
-
SI
-
PA
-
PL
-
BNTX
-

(Updates prices)

* Vaccine euphoria likely to grip gold in near-term -analyst

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

By Nakul Iyer

Dec 14 (Reuters) - Gold prices eased on Monday as COVID-19 vaccine rollouts lifted riskier assets, overshadowing hopes for further U.S. fiscal and monetary stimulus.

Spot gold XAU= fell 0.3% to $1,833.21 per ounce by 0615 GMT, while U.S. gold futures GCv1 eased 0.3% to $1,838.10.

"The euphoria around a COVID-19 vaccine will likely overshadow further easing from the Federal Reserve and a fiscal relief package in the near term," said Howie Lee, an economist at OCBC Bank.

"But gold could rally in 2021 when the vaccine optimism dies down and investors' focus returns to rising inflation expectations due to the large swathe of monetary and fiscal stimulus the U.S. economy still requires."

The first shipments of Pfizer Inc (NYSE:PFE) PFE.N and BioNTech SE's BNTX.O coronavirus vaccine in the United States began on Sunday, lifting Asian equities. MKTS/GLOB limiting gold's losses were reports that a $908 billion U.S. COVID-19 relief plan could be introduced as early as Monday as a leading Democrat lawmaker suggested his party might be willing to reach a compromise. now await the U.S Federal Reserve's two-day policy meeting starting on Tuesday with bets for increased purchases of longer-dated Treasuries to contain a rise in yields, that also pressured the dollar. USD/

Gold, considered a hedge against inflation and currency debasement, has gained 21% so far this year on the back of near-zero interest rates and unprecedented global stimulus.

Speculators raised bullish positions in COMEX gold and silver contracts in the week to Dec. 8, U.S. Commodity Futures Trading Commission (CFTC) data showed. XAG= fell 0.1% to $23.90 an ounce, while platinum XPT= gained 0.8% to $1,016.57 and palladium XPD= rose 0.3% to $2,325.65.

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.