Gold Down on Reborn Hopes for US Stimulus Consensus

02 December 2020

    Gold was seen down Wednesday morning in Asia, with increasing optimism over US stimulus talks and COVID-19 vaccines’ rollout progress.

     

    Optimism came after House of Representatives Speaker - Nancy Pelosi and US Treasury Secretary - Steve Mnuchin held their first talks for the latest stimulus measures since the presidential elections. On the Republican side - Senate leader - Mitch McConnell, urged the Congress to include a fresh wave of measures in a $1.4 trillion spending bill. Emergency lending programs set up by the Federal Reserve during the pandemic could also be revived quickly after they expire at year-end, senior New York Federal Reserve official - Lorie Logan commented. 

     

    Fed Chairman - Jerome Powell remained more cautious, however, issuing a warning that the US economy remains in a damaged and uncertain state.

     

    Meanwhile on the vaccine front, Pfizer and BioNtech have announced that they applied to European authorities for COVID-19 vaccine authorization rollout. Similar moves have already taken place in the US and the UK. Moderna has too applied for clearance in the US and EU, as its late-stage trials have proven safe.

     

    Gold futures were seen down 0.32% to $1,813.15 by 4:25 AM GMT. Holdings of the SPDR Gold Trust have, in turn, 0.3% to 1,191.28 tons on Tuesday, from 1,194.78 tons on Monday.


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