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Gold muted as firmer dollar, vaccine hopes dim safe-haven appeal

Published 12/11/2020, 12:12 pm
Updated 12/11/2020, 12:18 pm
© Reuters.
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Nov 12 (Reuters) - Gold prices inched lower on Thursday, after dropping over 1% in the previous session, pressured by a firmer dollar and optimism over a COVID-19 vaccine related developments bolstering risk appetite.

FUNDAMENTALS

* Spot gold XAU= fell 0.1% to $1,863.70 per ounce by 0048 GMT.

* U.S. gold futures GCv1 were flat at $1,862.20.

* The dollar index .DXY held steady near a one-week high hit Wednesday, while Asian stocks were set to continue their vaccine-driven gains. USD/ MKTS/GLOB

* President Donald Trump's campaign on Wednesday took another step in its long-shot legal strategy to upend his election loss with a Michigan lawsuit, while Georgia announced a recount and President-elect Joe Biden worked on laying the foundation of his administration. The European Central Bank will focus on more emergency bond purchases and cheap loans for banks when it puts together its new stimulus package next month to help the pandemic-hit euro zone economy, ECB President Christine Lagarde said on Wednesday. France reported 35,879 new coronavirus cases on Wednesday, taking the total to 1.86 million, overtaking Russia and making France the worst affected country in the European region. Holdings of SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, fell 0.72% to 1,240.74 tonnes on Wednesday. Silver XAG= fell 0.4% to $24.16 per ounce. Platinum XPT= was flat at $865, while palladium XPD= rose 0.3% to $2,321.88.

DATA/EVENTS (GMT)

0700 Germany HICP Final YY

Oct

0700 UK

GDP Est 3M/3M

Sept

0700 UK

GDP Estimate MM, YY

Sept

0700 UK

Manufacturing Output MM Sept

0700 UK

GDP Prelim QQ, YY

Sept

1200 India

Industrial Output YY

Sept

1330 US

CPI MM, SA

Oct

1330 US

Initial Jobless Clm

Weekly

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