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PRECIOUS-Gold edges down on vaccine prospects; investors eye stimulus

Published 12/02/2020, 09:16 AM
Updated 12/02/2020, 09:20 AM
© Reuters.
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Dec 2 (Reuters) - Gold prices edged lower on Wednesday on
growing progress over a coronavirus vaccine to aid a swift
global economic recovery, with investors eyeing the possibility
for further U.S. stimulus.

FUNDAMENTALS
* Spot gold XAU= fell 0.1% to $1,813.75 per ounce by 0050
GMT, after jumping more than 2% in the previous session.
* U.S. gold futures GCv1 fell 0.1% to $1,816.90.
* U.S. officials on Tuesday unveiled plans to begin
vaccinating millions of Americans against COVID-19 as early as
mid-December, as infections and hospitalizations in continue to
soar. * Moderna and Pfizer-BioNTech are in a tight race to launch
their COVID-19 vaccines in Europe after both applied for
emergency European Union approval on Tuesday. * Top Senate Republican Mitch McConnell said on Tuesday the
U.S. Congress should include a fresh wave of coronavirus
stimulus in a $1.4 trillion spending bill, with top U.S.
economic officials also pressing Congress for more aid to small
businesses.
* The emergency lending programs the Federal Reserve set up
during the pandemic could be revived quickly after they expire
at year-end, a senior New York Federal Reserve official said on
Tuesday. * But both Chicago Federal Reserve Bank President Charles
Evans and San Francisco Fed President Mary Daly agreed on
Tuesday that there was no immediate need for further monetary
stimulus, with Chicago's Evans calling for more fiscal support.
* Gold is viewed as a hedge against inflation likely to
result from large stimulus measures.
* Holdings of the SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, fell 0.3% to 1,191.28 tonnes
on Tuesday from 1,194.78 tonnes on Monday. * Silver XAG= fell 0.5% to $23.89 an ounce , while
platinum XPT= dropped 0.6% to $994.00 and palladium XPD= was
down 0.4% at $2,397.00.

DATA/EVENTS (GMT)
1000 EU Oct. Unemployment Rate
1900 US Federal Reserve issues
Beige Book of economic condition

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