Gold slips on stronger dollar, improving risk appetite
· Gold fell as much as 1.1% on Wednesday, hurt by a stronger dollar, while optimism around a potential COVID-19 vaccine raised hopes for a quick economic rebound, driving investors towards riskier assets.
· Spot gold fell 0.7% at $1,864.38 per ounce by 1:42 p.m. EST (1842 GMT). U.S. gold futures settled down 0.8% to $1,861.60.
· "Gold's got two things working against it, strong equities and a strong dollar at this point. It's hard for gold to continue to rally given those two markets being up higher," said Bob Haberkorn, senior market strategist at RJO Futures.
"The flight to safety in the precious metals that we had last week after the U.S. elections is gone away on the back of coronavirus vaccine news."
· Denting gold's appeal, the dollar rose 0.3% to a near one-week high, making bullion more expensive for holders of other currencies.
· Risk sentiment among investors gained as prospects of an effective COVID-19 vaccine overshadowed worries over surging infections.
But the breakthrough highlighted the logistical challenges of distributing hundreds of millions of doses once they become available.
· "Given the reaction we've seen to vaccine news in recent days, the immediate downside risks for gold have undoubtedly increased," OANDA analyst Craig Erlam said in a note.
"The key area remains between $1,850-$1,860 and it's looking very vulnerable in the near-term." However, "the longer term prospects for gold are bullish, the road to recovery will take time and require more central bank and government support."
· Federal Reserve policymakers on Tuesday highlighted the need for more targeted fiscal support from the government.
· Gold, which has risen more than 22% this year, tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation and currency debasement.
· Silver rose 0.1% to $24.24 per ounce. Platinum fell 2% to $865.28 and palladium shed 5.6% to $2,316.20.
· CORONAVIRUS UPDATES:
Global Cases: 52.39M Global Deaths: 1.28M
U.S. Cases: 10.68M U.S. Deaths: 247,169
· New York to impose curfew on restaurants, bars and gyms as Covid worsens across the U.S.
· Biden Covid advisor says U.S. lockdown of 4 to 6 weeks could control pandemic and revive economy
· Fed’s Rosengren says next 6 months will be ‘pretty choppy’ despite vaccine news
The next six months will remain turbulent as the global economy keeps grappling with the effects of the coronavirus pandemic, Eric Rosengren, president of the Federal Reserve Bank of Boston, told CNBC.
· German health minister says it’s too early to tell if its partial Covid lockdown will be extended
· Lagarde warns against vaccine optimism and hints at more ECB easing
European Central Bank President Christine Lagarde cautioned Wednesday against an immediate economic impact from a Covid-19 vaccine, while also giving more details about what the central bank is likely to do next.
“While the latest news on a vaccine looks encouraging, we could still face recurring cycles of accelerating viral spread and tightening restrictions until widespread immunity is achieved,” Lagarde said at the ECB Forum on Central Banking.
· ‘Don’t be under the illusion’ that an economic recovery will come quickly with a vaccine, UBS’ Weber says
The announcement earlier this week that an effective coronavirus vaccine has been developed was given a rapturous welcome by global markets, but UBS Chairman Axel Weber cautioned that even with a vaccine, it will take time for the global economy to get back to pre-crisis levels.
· Covid vaccine won’t be an ‘instant stimulus’ to the U.S. economy, warns economist
A Covid-19 vaccine will not result in an “instant stimulus” to the U.S. economy, which still needs greater fiscal support as its recovery loses momentum, an economist said on Wednesday.
Markets globally rallied after Pfizer and BioNTech announced on Monday that their coronavirus vaccine was more than 90% effective in preventing the disease among those with no evidence of prior infection.
· Pfizer and BioNTech’s vaccine poses global logistics challenge
Governments are scrambling to prepare for the rollout of the vaccine, which must be stored at -70C (-94F), after the announcement from the two companies that it was more than 90% effective and had no serious side-effects. The news sparked hopes of a return to normal life and a stock market rally, but now minds are turning to the practicalities of getting the vaccine quickly to populations across the world, in particular to the vulnerable people who need it most.
· Pfizer CEO sold $5.6 million of stock as company announced vaccine data that sent shares soaring
· Russia says its Sputnik V COVID-19 vaccine is 92% effective
Russia’s Sputnik V vaccine is 92% effective at protecting people from COVID-19 according to interim trial results, the country’s sovereign wealth fund said on Wednesday, as Moscow rushes to keep pace with Western drugmakers in the race for a shot.
· Georgia’s secretary of state announces a ‘full, by-hand’ recount of presidential election votes as Biden leads
Raffensperger, a Republican, said the state will work with county officials to complete the recount in time to meet its Nov. 20 deadline for certifying statewide election results.
· ‘Very, highly unlikely’ Trump wins Arizona, no evidence of fraud, Republican state attorney general says
· Trump presses on with uphill legal struggle hoping to overturn Biden victory
· Trump meets with top election advisors as Biden’s lead endures
President Donald Trump met with his top election advisors on Wednesday as his chances for reversing an apparent win for President-elect Joe Biden in the race for the White House looked increasingly daunting.
Wednesday’s meeting came as NBC News reported that there is growing expectation among Trump’s advisors that he will never concede that he lost to Biden, even when ballots are certified in coming weeks around the country.
· IMF eyes relationship reset with biggest shareholder after Biden win
· Investors dive into emerging markets after U.S. election, vaccine breakthrough
Reference: CNBC, Reuters, Worldometers, The Guardian
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