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PRECIOUS-Gold dips as U.S. stimulus remains elusive

Published 12/10/2020, 09:30 AM
Updated 12/10/2020, 09:40 AM
© Reuters.
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Dec 10 (Reuters) - Gold prices eased on Thursday as the U.S.
dollar held firm against other major currencies in the absence
of signs of any additional U.S. fiscal stimulus to ease the
economic blow from the COVID-19 pandemic.

FUNDAMENTALS
* Spot gold XAU= was down 0.2% at $1,835.11 per ounce by
0109 GMT, after slipping as much as 2.5% on Wednesday. U.S. gold
futures GCv1 rose 0.1% to $1,839.70.
* The U.S. House of Representatives on Wednesday approved a
one-week extension of federal government funding, giving
lawmakers more time to agree on a broader coronavirus relief
package. * But, the U.S. Senate Majority Leader Mitch McConnell said
on Wednesday that lawmakers were still looking for a way forward
on a relief package. * Gold is seen as a hedge against inflation and currency
debasement likely to result from large stimulus measures.
* Dimming some of the optimism over COVID-19 vaccine,
Britain's medicine regulator warned people with significant
allergies not to get Pfizer-BioNTech's COVID-19 vaccine after
two people suffered adverse reactions.
* Offering a new glimmer of hope, some U.S. health officials
said vaccinations could begin as soon as this weekend, and
states have escalated plans for its distribution. * British Prime Minister Boris Johnson and the European
Union's chief executive gave themselves until Sunday for
negotiations on a post-Brexit trade deal after failing to narrow
differences during discussions in Brussels. * Gold is also seen as a hedge against political and
economic uncertainty.
* Gold-backed exchange traded funds (ETFs) shrank in
November, the World Gold Council (WGC) said on Wednesday.
* Silver XAG= fell 0.3% to $23.85 an ounce, while platinum
XPT= gained 0.2% to $1,003.07 and palladium XPD= was up 0.7%
at $2,279.83.

DATA AHEAD (GMT)
0700 UK Oct. Manufacturing Output
1330 US Nov. CPI MM
1330 US Weekly Initial Jobless Claim

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