Gold prices slip as vaccine progress dents bullion’s appeal

Dec 3:
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 slipped 0.2% to $1,826.10 per ounce by 0156 GMT, U.S.
gold futures were trading steady at $1,829.50.

* U.S. health experts on Wednesday welcomed Britain’s approval of Pfizer Inc’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 fell 1.2% to $23.82 an ounce, while platinum

dropped 0.7% to $1,007 and palladium 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

Source link

Spread the love