Gold Gains as Traders Await Progress on US Fiscal Stimulus
Arslan Butt • 1 min read
At the beginning of a brand new trading week, gold prices are trading somewhat bullish as markets await developments towards more fiscal stimulus in the US even as vaccine optimism supports the risk sentiment. At the time of writing, GOLD is trading at a little above $1,841.
The risk-on sentiment in global markets remains supported as Britain gets set to begin rolling out Pfizer’s vaccine within the country from today. Traders are hopeful that a successful vaccine rollout can effectively bring an end to the coronavirus pandemic and help drive economic recovery around the world.
Meanwhile, weak economic data from the US raises expectations for more stimulus measures to be implemented in order to prop up the economy that has suffered severely due to the pandemic and resulting lockdowns. November’s NFP report which released on Friday revealed the slowest pace of increase in jobs in the US since May, highlighting the economic impact of the pandemic.
Expectations for more stimulus plans are supporting the safe haven appeal of gold in markets despite the prevailing risk-on sentiment. In addition, markets are also cautiously awaiting Britain and the EU to finalize the post-Brexit trade deal this week, with only a few weeks left for the transition period to end.