Gold Down on U.S. Stimulus Uncertainty

By Adam Claringbull

Investing.com – Gold was down on Monday morning in Asia. An early push upward on the basis of potential U.S. stimulus measures soon petered out, as there was little certainty on offer. Markets await news from the U.S. Federal Reserve for direction.

Gold futures inched down 0.07% at $1,871.05 by 12:24 AM ET (4:24 AM GMT).

Gold prices picked up on Friday after U.S. Treasury Secretary Steven Mnuchin proposed that COVID-19 stimulus discussions should be continued. However, the boost was short lived, as he also confirmed his decision to end a series of federal loan assistance programs on Dec. 31.

Adding to the uncertainty of the likelihood of a concerted U.S. stimulus program any time soon is the ongoing deadlock between Republicans and Democrats over the size and form of financial aid that a package should take.

Developments on the COVID-19 vaccine front were also prominent over the weekend, with Moncef Slaoui, head of the U.S. government’s Operation Warp Speed, announcing a possible Dec. 11 start date for the rollout of a vaccination program on Sunday.

Pushing against the vaccination news is the inexorable rise of COVID-19 cases, with global figures now above 58.6 million and deaths at close to 1.4 million, according to Johns Hopkins University data. With the U.S. Thanksgiving holiday on Nov. 26, there are deep concerns about an even wider spread of the virus, as millions of people are expected to travel across the U.S. to be with family.

India helped strengthen the positive side for the precious metal, with the festival season driving substantial purchases of gold during the period. However, the amounts were lower than last year’s figures.

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