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PRECIOUS-Gold prices slip as vaccine progress dents bullion's appeal

Published 03/12/2020, 01:17 pm
Updated 03/12/2020, 01:18 pm
© Reuters.
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Dec 3 (Reuters) - Gold prices edged lower on Thursday as news of the world's first vaccine approval from Britain underscored hopes of a swift economic recovery, weighing on bullion's safe-haven demand, while investors kept a close eye on potential U.S. stimulus.

FUNDAMENTALS

* Spot gold XAU= slipped 0.2% to $1,826.10 per ounce by 0156 GMT, U.S. gold futures GCv1 were trading steady at $1,829.50.

* U.S. health experts on Wednesday welcomed Britain's approval of Pfizer Inc (NYSE:PFE)'s COVID-19 vaccine, in a sign that U.S. regulators may soon follow suit to combat the pandemic. Positive vaccine news could push more money out of gold and into riskier assets as bullion is regarded as a safe investment during uncertain times.

* Congressional Republicans and Democrats were unable to reach agreement on a fresh coronavirus relief package, though early signs indicate that a $908 billion bipartisan proposal could be gaining traction as a negotiating tool. Both Treasury Secretary Steven Mnuchin and outgoing U.S. President Donald Trump supported a proposal put forth by Republican Senate Majority Leader Mitch McConnell after he rejected the bipartisan package.

* Data showed on Wednesday that U.S. private payrolls rose less than expected in November as soaring new COVID-19 infections triggered a wave of business restrictions. Joe Biden will not immediately cancel President Donald Trump's trade agreement with China nor remove tariffs on Chinese exports, the New York Times on Wednesday quoted Biden as saying. The European Union's chief Brexit negotiator said on Wednesday negotiations on a trade deal with Britain were reaching "a make-or-break moment". Silver XAG= fell 1.2% to $23.82 an ounce, while platinum XPT= dropped 0.7% to $1,007 and palladium XPD= was up 0.1% at $2,401.60.

DATA/EVENTS (GMT)

0900 EU Nov. Services Final PMIs

1330 US Weekly Initial Jobless Claims

1500 US Nov ISM Non-Manufacturing PMI

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