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PRECIOUS-Gold rises as Democrat sweep in U.S. Senate race lifts stimulus hopes

Published 01/07/2021, 08:56 AM
Updated 01/07/2021, 09:00 AM
© Reuters.
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Jan 7 (Reuters) - Gold prices edged higher on Thursday,
recovering from a sharp decline in the previous session, as
investors cheered a Democratic win in the U.S. Senate race that
is expected to unleash more fiscal stimulus.

FUNDAMENTALS
* Spot gold XAU= rose 0.2% to $1,922.81 per ounce by 0040
GMT, having dipped as much as 2.5% in the previous session. U.S.
gold futures GCv1 climbed 0.8% to $1,923.40.
* After a complete sweep of the two U.S. Senate seats,
Democrats now have narrow control of both chambers of Congress,
making it easier to advance legislative priorities from
coronavirus relief to climate change. * However, ratcheting up tensions, hundreds of supporters of
President Donald Trump stormed the U.S. Capitol on Wednesday in
a bid to overturn his election defeat, forcing Congress to
postpone a session that would have certified President-elect Joe
Biden's victory. * The Federal Reserve was nearly unanimous in its decision
last month to leave its bond-buying program unchanged, according
to minutes of the U.S. central bank's December policy meeting.
* More Americans were hospitalized with COVID-19 on
Wednesday than at any time since the pandemic began, as total
coronavirus infections crossed the 21 million mark. * In Europe, a second COVID-19 vaccine won regulatory
approval and the Netherlands belatedly launched its vaccination
campaign as European countries accelerated a patchy drive to
defeat the pandemic.
* Perth Mint's gold product sales in December eased from the
previous month but robust investment demand for the safe-haven
metal led average monthly 2020 shipments to double from the
prior year. * Silver XAG= shed 0.4% to $27.19 an ounce. Platinum
XPT= was flat at $1,101.33, while palladium XPD= eased 0.1%
at $2,437.23.

DATA/EVENTS (GMT)
0700 Germany Industrial Orders MM Nov
1000 EU HICP Flash YY Dec
1000 EU HICP-X F&E Flash YY Dec
1000 EU Consumer Confid. Final Dec
1330 US International Trade Nov
1330 US Initial Jobless Clm Weekly
1500 US ISM N-Mfg PMI Dec

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