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Gold slips on promising vaccine news; U.S. stimulus talks in focus

Published 09/12/2020, 12:16 pm
Updated 09/12/2020, 12:18 pm
© Reuters.
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Dec 9 (Reuters) - Gold eased from a two-week high on Wednesday as encouraging COVID-19 vaccine news dimmed its safe-haven appeal, while investors kept a close watch on developments around a U.S. fiscal stimulus deal.

FUNDAMENTALS

* Spot gold XAU= fell 0.2% to $1,868.21 per ounce by 0049 GMT, after hitting its highest since Nov. 23 at $1,875.07 on Tuesday. U.S. gold futures GCv1 dropped 0.2% to $1,871.80.

* Johnson & Johnson (NYSE:JNJ) JNJ.N could obtain late-stage trial results of a single-dose COVID-19 vaccine it is developing earlier than expected. Pfizer Inc (NYSE:PFE) PFE.N cleared the next hurdle in the race for its COVID-19 vaccine emergency approval in the United States after the drug regulator released documents that raised no new issues about its safety or efficacy. U.S. coronavirus cases crossed the 15 million mark on Tuesday, with record infections in at least three states. Global cases topped 67.72 million, according to a Reuters tally. U.S. President Donald Trump and his administration proposed a coronavirus relief package worth $916 billion including liability protections and state and local government aid. But Senate Majority Leader Mitch McConnell suggested a targeted relief plan that did not include liability protections or the state and local government aid, which leading Democrat lawmakers rejected. Gold is seen as a hedge against inflation and currency debasement.

* Talk of a chaotic British split from the European Union grew on Tuesday as UK Prime Minister Boris Johnson warned that the two sides may have to accept "no deal", with only three weeks left to break the deadlock. Gold is also seen as a hedge against political and economic uncertainty.

* Silver XAG= was down 0.1% to $24.53 an ounce, while platinum XPT= rose 0.2% to $1,024.84 and palladium XPD= was up 0.4% at $2,319.37.

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