Gold prices are declining on Wednesday as markets look forward to speedy rollout of COVID-19 vaccines across the world, especially across the US – the worst affected country, and possible resumption of economic recovery. At the time of writing, GOLD is trading at a little above $1,855.
The risk sentiment in global markets received a boost after the US began rolling out Pfizer’s COVID-19 vaccine across the country, following Britain and Canada. More optimism was driven by reports that Moderna’s vaccine could be granted emergency authorization by the US FDA this week. Meanwhile, European regulatory authorities have also sped up approval for the vaccine, making it possible for its rollout to begin before the end of this year.
Gold is also trading under pressure as markets cautiously await updates on the progress towards the US finalizing and announcing a fresh round of fiscal stimulus measures. Leaders of the US Congress have reportedly made progress and continued to hold discussions towards rolling out relief measures worth $1.4 trillion.
The yellow metal could experience volatility later today on the conclusion of the latest FOMC meeting. While the Fed is widely expected to hold interest rates unchanged, its forward guidance could shed light on the duration of the bond purchase program and drive some moves in gold.