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PRECIOUS-Gold set for worst month since 2016 on vaccine optimism

Published 01/12/2020, 02:30 am
Updated 01/12/2020, 06:00 am
© Reuters.
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(Adds details, updates prices)

* Gold set for a 5.3% monthly decline

* Silver on track to fall 4.6% for the month

* Interactive graphic tracking global spread of coronavirus: open

* https://tmsnrt.rs/3aIRuz7 in an external browser

By Shreyansi Singh

Nov 30 (Reuters) - Gold slipped to a five-month low on Monday and was on track for its worst month in four years as optimism over a swift vaccine-fuelled economic recovery dented allure for safe havens.

Spot gold XAU= was down 0.5% at $1,779.05 per ounce by 1:46 p.m. EST (1846 GMT), having earlier hit its lowest level since July 2 at $1,764.29. It has shed 5.3% so far this month.

U.S. gold futures GCv1 settled down 0.4% at $1,780.90 per ounce.

"They (investors) are abandoning gold because they feel that the vaccine is going to open up the markets at some point and it looks like the transition is going to be orderly," said George Gero, managing director at RBC Wealth Management. is going to be a long road ahead for gold because there does not seem to be any need for the haven at this time."

Gold's slide came despite a subdued dollar, which hit its lowest level in two and a half years. USD/ prospect of a vaccine-led economic recovery next year has put world shares on track for a record-breaking month, while Bitcoin hit a record high as its 2020 rally powered on. MKTS/GLOB up hopes for more government action to aid the economy, President-elect Joe Biden named former Federal Reserve Chair Janet Yellen, seen as a force for more fiscal action, as nominee for Treasury secretary. are now eyeing a congressional testimony by U.S. Federal Reserve Chairman Jerome Powell this week. and investors are exhibiting little risk aversion recently, amid no geopolitical hotspots at present, COVID-19 vaccine hopes and an apparent smoother transition of U.S. presidential duties seen," Kitco Metals senior analyst Jim Wyckoff said in a note.

"That's all bearish for the safe-haven metals."

Silver XAG= fell 0.6% to $22.55 an ounce, on track for a 4.6% fall on a monthly basis.

Platinum XPT= rose 0.1% to $964.08, while palladium XPD= slipped 1.7% to $2,383.26.

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