Gold regular on combined vaccine information, danger urge for food resumed

© Reuters.

Adam Claringbull – Gold rose in Asia on Friday morning, and markets digested potential hiccups on the way to a global vaccine rollout. However, an increased appetite for risk pushed prices in the opposite direction.

rose 0.09% to $ 1,807.20 by 11:58 p.m. ET (4:58 a.m. GMT), clearing the $ 1,800 mark. Trading volume was low as large US investors were out of the market due to the Thanksgiving holiday.

Concerns about the availability of viable vaccination programs around the world gave gold prices an upward trend as some scholars expressed skepticism about how effective such a program would be in the short to medium term. The outgoing US President Trump said a vaccine could be publicly released next week. However, current expectations apply to mid-December.

The shift in power between the US presidential administrations of Biden and Trump has now smoothed out, reducing the uncertainty that drives up safe haven assets. Global equity markets have attracted most of the investor interest this week. US markets hit new record highs as risk appetite returned in a hurry.

The European Central Bank’s chief economist, Phillip Lane, was positive for gold and urged further economic stimulus for the euro zone.

“To tolerate a longer period of even lower inflation … than originally planned would be costly and risky,” Lane told an academic audience via weblink.

“First, this would mean a weaker recovery in consumption and investment due to higher expected real interest rates. Second, it would contribute to a downward move in inflation expectations, which could hold. “

The proposition is a boost for gold as lower interest rates and a weaker euro make buying gold cheaper for currencies other than the euro. However, the gold price is more affected by movements in the greenback.

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