Gold rises as dollar dips on prospect of higher U.S. aid
· Gold prices rose on Tuesday as the dollar weakened after the approval of larger coronavirus relief checks by Democratic-led U.S. House of Representatives, while improved risk appetite kept it below last session’s one-week high.
· Spot gold rose 0.4% to $1,877.75 per ounce. The metal climbed as much 1.3% on Monday after U.S. President Donald Trump’s approval of a $2.3 trillion stimulus package.
· U.S. gold futures climbed 0.1% to $1,882.90.
· “Gold is trading technically as well with underlying support coming from the weaker dollar driven by the prospect potentially of an even bigger check being distributed to U.S. consumers,” said Saxo Bank analyst Ole Hansen.
“We are entering 2021 with some nervousness as we got stock markets at elevated levels and (on) prospects of additional stimulus against the prospect of vaccine starting to improve the economic outlook... but overall it hasn’t reduced the appetite for safe-haven metals.”
· European stocks extended their year-end rally, while the dollar index fell 0.3% against rival currencies on hopes of an expanded U.S. stimulus package with the U.S. Senate set to vote on $2,000 COVID-19 relief checks.
· Capping bullion’s gains was a marathon COVID-19 vaccination campaign across euro zone cheering up prospects of global growth in 2021.
· Broader markets will run with the economic recovery story next year but expansionary fiscal and loose monetary policy will keep gold prices pinned near current levels, said Hitesh Jain, lead analyst at Mumbai-based Yes Securities.
· The metal should trade in a range between $1,850-$2,000 in the next three to six months, he said.
· Gold, seen as a hedge against inflation, has risen 24% this year, largely driven by a raft of stimulus measures unleashed to mitigate the impact of the pandemic.
· Silver rose 0.1% to $26.17 an ounce. Platinum gained 1.3% to $1,044.52 and palladium dipped 0.5% to $2,311.79.
· CORONAVIRUS UPDATES:
Global Cases: 82.28M (+588,319)
Global Deaths: 1.79M (+13,234)
U.S. Cases: 19.95M (+176,839)
U.S. Deaths: 346,420 (+3,239)
U.K. Cases: 2.38M (+53,135)
U.K. Deaths: 71,567 (+414)
TH Cases: 6,440 (+155)
TH Deaths: 61(+1)
Myanmar Cases: 123,153 (+619)
Myanmar Deaths: 2,637 (+19)
· U.S. confirms first case of the new Covid strain discovered in UK
· McConnell blocks $2,000 stimulus checks, then ties them to unrelated Trump demands on tech and election
Senate Majority Leader Mitch McConnell on Tuesday blocked Senate Minority Leader Chuck Schumer’s attempt to unanimously pass a bill to increase direct payments in the year-end coronavirus relief package to $2,000.
The Kentucky Republican later Tuesday introduced a bill that would boost the size of the checks to $2,000 from $600, repeal Section 230 legal liability protections for internet platforms and create a commission to study election issues. The bill would meet all of President Donald Trump’s recent demands, which are unrelated, but would not get Democratic support and become law.
Through the bill, Republicans would both avoid the act of actually passing $2,000 payments but allow GOP senators running for reelection in Georgia’s Jan. 5 runoffs to express support for Trump’s priorities.
Defying Trump, McConnell delays vote on $2,000 checks, urges Senate to override defense veto
U.S. Senate Majority Leader Mitch McConnell on Tuesday put off a vote on President Donald Trump’s call to boost COVID-19 relief checks and urged the Senate to override his veto of a defense bill, in a rare challenge to his fellow Republican three weeks before he vacates the White House.
McConnell acted shortly after Trump assailed Republican leaders on Twitter, calling them “weak” and “tired” in an apparent effort to get the Senate to increase COVID-19 relief checks to $2,000 from $600 and to support his defense bill veto.
· Democratic Senator Schumer blasts checks legislation he says McConnell has introduced
Senate Majority Leader Mitch McConnell has introduced legislation linking $2,000 COVID-19 relief checks to President Donald Trump’s requests involving social media company legal protections and election fraud, the chamber’s top Democrat said on Tuesday.
“It will not pass the House and cannot become law,” Senate Democratic leader Chuck Schumer said in a statement, referring to the Democratic-majority House of Representatives.
McConnell’s office was not immediately available for comment.
· $600 stimulus payments will start going out tonight, Treasury Secretary Mnuchin says
· U.S. State Department approves $4.2 billion in potential arms sales to Kuwait - Pentagon
The U.S. State Department has approved the potential sale to Kuwait of Apache helicopters and spare parts for the Patriot missile system in two separate deals that could have a value of $4.2 billion, the Pentagon said on Tuesday.
· Biden slams Trump’s vaccine effort, reiterates plan to administer 100 million doses in 100 days
President-elect Joe Biden on Tuesday criticized the Trump administration’s effort to distribute and administer Covid vaccine shots, saying that the administration has failed to meet its own goals.
“The Trump administration’s plan to distribute vaccines is falling behind, far behind,” he said at a news briefing. “As I long feared and warned, the effort to distribute and administer the vaccine is not progressing as it should.”
He said his administration will “move heaven and earth” to accelerate the distribution and administration of the Covid vaccines once he takes office on Jan. 20. He reiterated his administration’s pledge to have administered 100 million doses of vaccine by his 100th day in office.
· UK-EU Brexit bill resolves 'vexed' European question -Johnson
Britain will be able to trade with its European neighbours and keep control of its laws and destiny, Prime Minister Boris Johnson will say on Wednesday before lawmakers vote on the Brexit deal he clinched at the eleventh hour.
· North Korea prepares for major party congress amid growing challenges
North Korean leader Kim Jong Un chaired a politburo meeting on preparations for a rare Congress that is expected to set new economic and political goals as the country faces growing challenges, state media said on Wednesday.
Reference: CNBC, Reuters, Worldometers
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