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PRECIOUS-Gold flat as U.S. stimulus hopes offset vaccine optimism

Published 07/12/2020, 02:32
Updated 07/12/2020, 02:36
© Reuters.
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Dec 7 (Reuters) - Gold prices were little changed in early
Asian trade on Monday, as hopes of a U.S. fiscal stimulus
package being passed this week countered downward pressure from
optimism around COVID-19 vaccines roll-outs.

FUNDAMENTALS
* Spot gold XAU= was flat at $1,836.91 per ounce by 0102
GMT. U.S. gold futures GCv1 were also little changed at
$1,840.70.
* Britain is preparing to become the first country to roll
out the Pfizer/BioNTech COVID-19 vaccine this week. * A gauge of Asian shares hit a record high. MKTS/GLOB
* Talks aimed at reaching a fresh coronavirus relief package
gathered momentum in the U.S. Congress on Friday, as a
bipartisan group of lawmakers worked to put the finishing
touches on a new $908 billion bill. * Highlighting the extent of the economic slowdown caused by
the pandemic, data showed on Friday the U.S. economy added the
fewest workers in six months in November.
* Gold tends to benefit from stimulus measures as it raises
the prospect of inflation which bullion is used to hedge
against.
* Britain and the European Union will make a last-ditch
attempt to strike a post-Brexit trade deal this week, with
probably just days left for negotiators to avert a chaotic
parting of ways at the end of the year.
* SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.6% to 1,182.70
tonnes on Friday. GOL/ETF
* Speculators raised their bullish positions in COMEX gold
and silver contracts in the week to Dec. 1, data showed. CFTC/
* Silver XAG= fell 0.1% to $24.13 per ounce and platinum
XPT= eased 0.2% to $1,052.86, while palladium XPD= gained
about 1% to $2,366.60.

DATA/EVENTS (GMT)
0700 Germany Oct. Industrial Output
0830 UK Nov. Halifax House Prices

 

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