Gold Down, with U.S. Vaccine Approval Countering Stimulus Hopes and Weaker Dollar By

© Reuters.

By Gina Lee – Gold was down on Monday morning in Asia, with investors retreating from the yellow metal amid positive COVID-19 vaccine news. The increased risk appetite offset support from a weaker dollar and hopes that the U.S. will pass its latest stimulus measures.

were down 0.22% at $1,839.75 by 11:57 PM ET (3:57 AM GMT), but remained above the $1,800 mark. The dollar was down on Monday.

Holdings in SPDR’s Gold Trust fell 0.32% to 1,175.99 tons on Friday from Thursday’s 1,179.78 tons. The U.S. Commodity Futures Trading Commission also said on Friday that hedge funds and money managers raised their bullish positions in COMEX gold and silver contracts in the week to Dec. 8.

The U.S. Food and Drug Administration (FDA) granted emergency use authorization of BNT162b2, the COVID-19 vaccine co-developed by Pfizer (NYSE:) and BioNTech SE (F:). The Dec. 11 approval will see the first U.S. deliveries of BNT162b2 later in the day.

Meanwhile, the text of the bill for a bipartisan $908 billion COVID-19 package will be released later in the day. The package could reportedly be split into two in order increase its chances of approval by both Democrats and Republicans.

Across the Atlantic, the U.K. and the European Union will “go the extra mile” to reach a post-Brexit trade deal. The two sides extended the deadline that was initially set for Sunday and negotiators will work to reach a deal in the coming days.

The upcoming week will see a slew of policy decisions from central banks as they convene for their last policy meetings of 2020. The U.S. Federal Reserve meets on Tuesday and Wednesday and is widely expected to provide fresh guidance on its continued asset purchases program. The Bank of England, as well as the Mexican, Swiss and Indonesian central banks, will hand down their policy decisions on Thursday. Policy decision from the Japanese and Russian central banks will follow on Friday.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *