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PRECIOUS-Gold slips on promising vaccine news; U.S. stimulus talks in focus

Published 12/09/2020, 09:16 AM
Updated 12/09/2020, 09:20 AM
© Reuters.
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Dec 9 (Reuters) - Gold eased from a two-week high on
Wednesday as encouraging COVID-19 vaccine news dimmed its
safe-haven appeal, while investors kept a close watch on
developments around a U.S. fiscal stimulus deal.

FUNDAMENTALS
* Spot gold XAU= fell 0.2% to $1,868.21 per ounce by 0049
GMT, after hitting its highest since Nov. 23 at $1,875.07 on
Tuesday. U.S. gold futures GCv1 dropped 0.2% to $1,871.80.
* Johnson & Johnson JNJ.N could obtain late-stage trial
results of a single-dose COVID-19 vaccine it is developing
earlier than expected. * Pfizer Inc PFE.N cleared the next hurdle in the race for
its COVID-19 vaccine emergency approval in the United States
after the drug regulator released documents that raised no new
issues about its safety or efficacy. * U.S. coronavirus cases crossed the 15 million mark on
Tuesday, with record infections in at least three states.
Global cases topped 67.72 million, according to a Reuters tally.
* U.S. President Donald Trump and his administration
proposed a coronavirus relief package worth $916 billion
including liability protections and state and local government
aid. * But Senate Majority Leader Mitch McConnell suggested a
targeted relief plan that did not include liability protections
or the state and local government aid, which leading Democrat
lawmakers rejected.
* Gold is seen as a hedge against inflation and currency
debasement.
* Talk of a chaotic British split from the European Union
grew on Tuesday as UK Prime Minister Boris Johnson warned that
the two sides may have to accept "no deal", with only three
weeks left to break the deadlock. * Gold is also seen as a hedge against political and
economic uncertainty.
* Silver XAG= was down 0.1% to $24.53 an ounce, while
platinum XPT= rose 0.2% to $1,024.84 and palladium XPD= was
up 0.4% at $2,319.37.

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