Gold Dips as Markets Look Forward to Britain’s Vaccine Rollout
On Thursday, gold is trading bearish with prices falling as the risk sentiment in markets received a fresh boost over optimism surrounding COVID-19 vaccines, after Britain approved the use of Pfizer’s vaccine starting next week. At the time of writing, GOLD is trading at a little above $1,833.
During the previous session, Britain became the first country in the world to grant approval for the use of Pfizer/BioNTech’s COVID-19 vaccine. With this, the rollout of the vaccine is set to start as early as next week, raising hopes that the coronavirus pandemic could soon be brought under control.
While hopes for a way to move past the pandemic have improved the risk appetite in markets and dented the safe haven appeal of gold, the yellow metal enjoys support over the increasing possibility of more fiscal stimulus being announced in the US. Both Republicans and Democrats have once again started negotiations towards the coronavirus relief package, and news reports point to a possible acceptance of the $908 billion proposal.
Gold prices are also enjoying support from weak economic data from the US, after the ADP report which released on Wednesday indicated a smaller than forecast increase in private jobs across the country. Later this week, the NFP report release could drive further movement in gold, as the numbers are expected be weak due to the latest round of restrictions being imposed as a result of the second wave of the pandemic.
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