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PRECIOUS-Gold eases off 8-week high, Georgia elections in focus

Published 2021-01-04, 08:20 p/m
© Reuters.
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Jan 5 (Reuters) - Gold eased on Tuesday after rising more than 2% in the previous session, while market participants awaited runoff elections for both U.S. Senate seats from Georgia that would determine the future course of fiscal support.

FUNDAMENTALS

* Spot gold XAU= was down 0.2% to $1,938.16 per ounce by 0045 GMT, after hitting its highest since Nov. 9 at $1,945.26 earlier in the session, while U.S. gold futures GCv1 inched down 0.1% to $1,944.30.

* The Georgia runoff elections will decide which party controls the U.S. Senate. A win by Democrats would make it easier for President-elect Joe Biden to push policies such as rewriting the tax code to boosting stimulus. Gold is considered a hedge against inflation and currency debasement.

* The U.S. Federal Reserve's minutes from the last policy meeting are due on Wednesday. Monetary policy will stay accommodative for "quite some time", Cleveland Fed President Loretta Mester said on Monday. British Prime Minister Boris Johnson on Monday ordered England into a new national lockdown to contain a surge in COVID-19 cases. U.S. manufacturing activity picked up at its briskest pace in more than six years in December, extending a recovery in the factory sector. SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings rose 1.5% to 1,187.95 tonnes on Monday. GOL/ETF

* Speculators cut bullish positions in COMEX gold and silver contracts in the week to Dec. 29, data showed on Monday. Silver XAG= shed 0.3% to $27.12 an ounce. Platinum XPT= fell 0.5% to $1,064.29, while palladium XPD= gained 0.2% at $2,377.05.

DATA/EVENTS (GMT, Dec) 0855 Germany Unemployment Chg, Rate SA 0930 UK

Reserve Assets Total 1500 US

ISM Manufacturing PMI

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