Gold Dips as Britain Begins to Vaccine Rollout But Stimulus Limits Losses

Gold is trading somewhat bearish, with prices falling as traders focus on the optimism surrounding the development and rollout of effective

Arslan Butt•Wednesday, December 9, 2020•1 min read

Gold Dips as Britain Begins to Vaccine Rollout But Stimulus Limits Losses

On Wednesday, gold is trading somewhat bearish, with prices falling as traders focus on the optimism surrounding the development and rollout of effective vaccines against COVID-19 and how it can drive economic recovery. At the time of writing, GOLD is trading at a little above $1,860.

While Britain has officially started the rollout of the vaccine, Pfizer’s vaccine is one step closer to being granted emergency approval for use across the US. Markets also cheered reports about Johnson & Johnson getting results for its vaccine’s late-stage trials sooner than previously anticipated.

Despite the rising vaccine optimism supporting the risk-on sentiment in markets and weakening its safe haven appeal, gold prices received some support over developments in the US related to the next round of fiscal stimulus measures. On Tuesday, the Trump administration proposed a new package worth $916 billion, which bipartisan leaders have hailed as progress.

The prospect of a new round of stimulus measures in the form of the coronavirus relief package is supporting gold prices. Announcement of stimulus measures to support the US economy drives weakness in the dollar and could send the yellow metal prices even higher in the coming sessions.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.