Gold declines as equities gain

Gulf Today Report

Gold prices fell on Wednesday as coronavirus vaccine encourages investors towards more risky equities.

Spot gold fell 0.7% to $1,858.80 per ounce by 06:00 GMT, after hitting its highest since Nov. 23 at $1875.07 on Tuesday, while US gold futures fell 0.6% to $1,864.00 per ounce.

"Market action across global markets is swinging between vaccine driven optimism and hopes for US fiscal stimulus...so risk sentiment is positive," said Harshal Barot, a senior research consultant for South Asia at Metals Focus.

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According to Jeffery Halley, a senior market analyst at OANDA, gold can overcome any vaccine-related news, it is a buy on dips trade.

Micheal Langford, executive director at corporate advisory and consultancy firm AirGuide, said the propose $916 US stimulus package is likely to weaken the dollar and lead to liquidity that would serve as an advantage for gold.

Silver slipped 1.1% to $24.28 an ounce, while platinum rose 0.4% to $1,026.36 and palladium was down 0.1% at $2,307.09.