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PRECIOUS-Gold eases off 8-week high, Georgia elections in focus

Published 05/01/2021, 02:20
Updated 05/01/2021, 02:24
© Reuters.
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Jan 5 (Reuters) - Gold eased on Tuesday after rising more
than 2% in the previous session, while market participants
awaited runoff elections for both U.S. Senate seats from Georgia
that would determine the future course of fiscal support.

FUNDAMENTALS
* Spot gold XAU= was down 0.2% to $1,938.16 per ounce by
0045 GMT, after hitting its highest since Nov. 9 at $1,945.26
earlier in the session, while U.S. gold futures GCv1 inched
down 0.1% to $1,944.30.
* The Georgia runoff elections will decide which party
controls the U.S. Senate. A win by Democrats would make it
easier for President-elect Joe Biden to push policies such as
rewriting the tax code to boosting
stimulus. * Gold is considered a hedge against inflation and currency
debasement.
* The U.S. Federal Reserve's minutes from the last policy
meeting are due on Wednesday. Monetary policy will stay
accommodative for "quite some time", Cleveland Fed President
Loretta Mester said on Monday. * British Prime Minister Boris Johnson on Monday ordered
England into a new national lockdown to contain a surge in
COVID-19 cases. * U.S. manufacturing activity picked up at its briskest pace
in more than six years in December, extending a recovery in the
factory sector. * SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings rose 1.5% to 1,187.95
tonnes on Monday. GOL/ETF
* Speculators cut bullish positions in COMEX gold and silver
contracts in the week to Dec. 29, data showed on Monday.
* Silver XAG= shed 0.3% to $27.12 an ounce. Platinum XPT=
fell 0.5% to $1,064.29, while palladium XPD= gained 0.2% at
$2,377.05.

DATA/EVENTS (GMT, Dec)
0855 Germany Unemployment Chg, Rate SA
0930 UK Reserve Assets Total
1500 US ISM Manufacturing PMI

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