Gold prices jump as dollar edges lower
· Gold prices jumped as much as 1% on Wednesday, bolstered by a weaker dollar, while investors kept hopes pinned on a U.S. stimulus package even after President Donald Trump threatened to not sign the relief bill.
· Spot gold was up 0.7% at $1,872.03 per ounce, having risen as much as 1% earlier, while U.S. gold futures rose 0.5% to $1,879.00 per ounce.
· “The economic data just cements the belief that the economy is slowing down and that should help the negotiations with stimulus ... it’s going to be extremely likely that some type of stimulus deal will still get done,” said Edward Moya, senior market analyst at OANDA.
“The slightly weaker dollar has provided a move higher for gold,” Moya said, adding the stimulus deal and positive developments on the Brexit front are needed to further cement gold’s bullish case.
· Raising gold’s allure for holders of other currencies, the dollar index dropped 0.5%, while investors also expected further declines in 2021. President Donald Trump threatened to not sign an $892 billion coronavirus relief bill, seen as a lifeline for the nation’s pandemic-battered economy saying the amount in the stimulus checks should be increased.
· “Even if Donald Trump declines to sign the bill, it is widely expected that Biden will make it pass and therefore we do not see any downside to gold at the moment,” Natixis analyst Bernard Dahdah said.
· The number of Americans filing first-time claims for unemployment benefits remained elevated but posted an unexpected fall last week. Bullion, considered a hedge against inflation and currency debasement, has risen more than 23% this year, benefiting from massive stimulus unleashed globally.
· Alarm about a highly infectious coronavirus variant prompted a wave of travel bans, highlighting concerns over an economic recovery after the pandemic.
· Silver rose 1.7% to $25.56 an ounce. Platinum gained 0.8% to $1,009.69 and palladium was up by 0.6% at$2,327.61.
· On the U.S. economic data front, U.S. jobless claims totaled 803,000 during the week ending Dec. 19, better than an estimate of 888,000 according to economists polled by Dow Jones. However, core durable goods and personal income both fell short of expectations in November.
· Trump’s attack on Covid relief bill could lead to government shutdown, lapse in unemployment aid
· Trump vetoes colossal $740 billion defense bill, breaking with Republican-led Senate
· Democrats seize on Trump’s push for $2,000 stimulus checks for boost in Georgia Senate race
In the crucial Georgia Senate runoff races, Democratic challengers Jon Ossoff and Raphael Warnock are using President Donald Trump’s latest push for larger stimulus checks to bash incumbent GOP Sens. David Perdue and Kelly Loeffler.
In video posted Tuesday night, Trump called the $900 billion Covid relief bill passed by Congress an unsuitable “disgrace” and urged lawmakers to make a number of changes, including increasing the $600 stimulus checks to $2,000.
The two Democratic Senate candidates, who have advocated for larger direct payments, wasted no time in responding to Trump’s move and criticizing their opponents.
Covid relief has been central issue in the tight election that will decide control of the Senate. If at least one Republican wins in the Jan. 5 election, the GOP will retain control of the upper chamber. If both Democrats win, Democrats will have control of the White House and Congress.
· CORONAVIRUS UPDATES:
Global Cases: 79.03M (+678,050)
Global Deaths: 1.73M (+13,340)
U.S. Cases: 18.91M (+230,562)
U.S. Deaths: 334,169 (+3,352)
U.K. Cases: 2.14M (+39,237)
U.K. Deaths: 69,051 (+744)
TH Cases: 5,762 (+46)
TH Deaths: 60
Myanmar Cases: 118,869 (+923)
Myanmar Deaths: 2,507 (+23)
· U.K. government confirms second strain of coronavirus
A second new and potentially more infectious variant of the novel coronavirus identified in South Africa has emerged in the United Kingdom, the British government confirmed Wednesday.
· Covid vaccine distribution has been slower than U.S. officials thought it would be
· The U.S. has vaccinated just 1 million people out of a goal of 20 million for December
· Pfizer, U.S. strike 100 million COVID-19 vaccine deal with 70 million due by June
The U.S. government will pay Pfizer Inc nearly $2 billion for 100 million additional doses of its COVID-19 vaccine to bolster its supply as the country grapples with a nationwide spike in infections.
Under the new agreement, Pfizer will deliver at least 70 million doses by June 30 and the rest no later than July 31, the company said on Wednesday, bringing the total number of doses to 200 million for a total price of about $4 billion.
The purchase price amounts to $19.50 per shot and is slightly higher than the $18.90 per dose that Reuters has reported the European Union has agreed to pay. The shot has been authorized for use in EU and the United States.
· WHO chief scientist warns against Covid complacency, says herd immunity unlikely until end-2021
The world must remain vigilant for the next six months, while the coronavirus vaccine is rolled out as it will take time before most of the population receive their vaccinations, the World Health Organization’s chief scientist told CNBC.
· Brexit trade deal marathon heads to the finish line
Reference: CNBC, Reuters, Worldometers
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