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·         Gold at 4-mth low as strong U.S. data, vaccine trials boost recovery hopes

Gold fell more than 2% to its lowest level in four month on Monday as better-than-expected U.S. business activity data and promising COVID-19 vaccine trials boosted hopes for a swifter economic recovery.

Spot gold dipped 1.7% to $1,838.71 per ounce by 01:50 p.m. EST (1850 GMT), after falling as much as 2.2% to its lowest since July 21 at $1,830.19. U.S. gold futures settled down 1.9% at $1,837.80.

- "Gold broke below the key $1,850 level after an unbelievably strong U.S. PMI release just dampened the need for stimulus. No one was expecting such strong readings in both services and manufacturing," said Edward Moya, senior market analyst at OANDA.

-  Data on Monday showed U.S. business activity in November expanded at its fastest rate in more than five years, boosting optimism about the health of the U.S. economy among investors.

-  The upbeat data came after Britain's AstraZeneca said its vaccine could be around 90% effective without any serious side effects.       

                  

-  "Investors are rotating back to stocks because of the fact that there is little less uncertainty now than there was," said Jeffrey Sica, founder of Circle Squared Alternative Investments.

"The data that came out today makes it more likely that we will see a recovery (sooner) than originally anticipated."

-  Further denting bullion's appeal, the dollar rose against rivals.      

Gold has risen more than 21% this year, benefiting from its attraction as a safe haven against inflation and currency debasement.

-  "While we do expect gold to go onto the defensive when the global economies start to show sustainable recoveries, the tailwinds behind the market have not yet been fully dissipated,"  StoneX analyst Rhona O'Connell said in a note.  

Silver fell 2.4% to $23.56 an ounce, platinum dipped 2.2% to $925.24, while palladium        rose 1.3% to $2,355.57.

·         Fed's Evans says should not try to finetune inflation overshoot

Chicago Federal Reserve Bank President Charles Evans said Monday that even if rapid vaccine distribution next year puts the economy on course for a faster recovery, the U.S. central bank will still likely keep rates where they are until at least 2023.

“In the past the Fed has not put enough weight on valuing getting inflation to 2% and above,” Evans told reporters, adding that the Fed ought to get core inflation to 2.5%. “I don’t think we should get involved in trying to finetune the overshoot...I would be surprised if we were to seek to increase interest rates sooner than 2023, given the objectives that we’ve laid out.”

 

·         Fed's Barkin: Next few months could be challenging until vaccine available

A vaccine to prevent the coronavirus may not be widely available until next summer, and households could struggle over the next several months without more government aid, Richmond Federal Reserve Bank President Thomas Barkin said on Monday.

While development of an effective vaccine could boost growth by making people more comfortable with in-person activities, such a vaccine may not be widely available “until this summer at best,” Barkin said during an event organized by Greater Winston-Salem, Inc. “So the next few months could be challenging.”

 

·         NY Fed's markets head Singh says big challenges remain for economy

“In terms of what’s missing, or what next steps could be we still have a big hole,” Daleep Singh, head of the markets desk at the New York Fed, said during a virtual event organized by the Institute of International Finance. “Those are very big challenges that remain.”

 

·         No-deal Brexit would have a more lasting effect on UK than COVID: BoE's Bailey

Bank of England Governor Andrew Bailey said on Monday a no-deal Brexit would cause longer-term damage to Britain’s economy than the COVID-19 pandemic, and the impact of the change might be felt for decades.

 

 

·         CORONAVIRUS UPDATES:

Global cases: 59,498,043

Global deaths: 1,401,527

U.S. cases: 12,773,231 (+168,160)

U.S. deaths: 263,647 (+930)

 

·         AstraZeneca says COVID-19 "vaccine for the world" can be 90% effective

AstraZeneca said on Monday its COVID-19 vaccine could be around 90% effective, giving the world another weapon to fight the global pandemic and potentially cheaper to make, easier to distribute and faster to scale-up than rivals.

The British drugmaker said it will have as many as 200 million doses by the end of 2020 - around four times as many as U.S. competitor Pfizer. Seven hundred million doses could be ready globally as soon as the end of the first quarter of 2021.

And it can be transported and stored at normal fridge temperatures, which proponents say would make it easier to distribute, especially in poor countries, than Pfizer’s, which needs to be shipped and stored at -70C, the sort of temperature typical of an Antarctic winter.

 

 

·         Doctors say CDC should warn people the side effects from Covid vaccine shots won’t be ‘a walk in the park’

 

Germany looks set to extend lockdown into December as infections remain high

 

Markus Söder, Bavaria’s chief minister and leader of the CDU’s sister party, the Christian Social Union (CSU), told Bild on Sunday that restaurants, hotels and cinemas should remain closed until December 20, and that there should be a ban on fireworks and alcohol in public squares on New Year’s Eve.

 

·         UK’s Boris Johnson confirms end of lockdown on Dec. 2 — with conditions

 

·         Biden chooses former Fed Chair Janet Yellen to be Treasury secretary

 

·         IIF banking group chief calls Yellen 'extraordinary choice' for U.S. Treasury

 

 

·         Trump campaign suffers new court loss in attempt to block Biden’s win in Pennsylvania

 

·         Michigan certifies Biden election win, days after Trump leans on state’s GOP lawmakers

 

·         Georgia sets timeline for Trump-requested vote recount

Georgia will begin recounting votes from the Nov. 3 election again on Tuesday at 9 a.m. EST (1400 GMT), in response to a request from President Donald Trump’s campaign, a state official said.

The new recount, which is not expected to alter certified results that show President-elect Joe Biden won the election, will end at midnight on Dec. 2, according to Gabriel Sterling, the Georgia official who oversees voting systems. The recount will be conducted by electronic scanners.

 

·         Trump appointee informs Biden that GSA will begin transition process, reports say

 

·         Trump administration begins transition process to President-elect Joe Biden

 

 

·         NATO, EU invite Biden to rebuild transatlantic ties

 

·         Republican pollster: Trump’s false ‘rigged’ election claims may hurt GOP chances of keeping Senate

The GOP holds a two-seat advantage in the Senate, 50-48, according to NBC News projections. The remaining to vacancies in Georgia will be decided in run-offs Jan. 5. One race is between Republican Sen. Kelly Loeffler and Democrat Raphael Warnock, while the other pits incumbent GOP Sen. David Perdue and Democratic challenger Jon Ossoff.

 

Reference: CNBC, Reuters, Worldometers