Gold falls as Biden begins transition
Picture used for illustrative purpose. File
Gulf Today Report
Gold declined on Wednesday, a four-month low due to investors taking on riskier assets as US President-elect begins transition and COVID-19 vaccine looking promising.
Spot gold eased 0.2% to $1,803.51 per ounce by 03:27 GMT. On Tuesday, it had hit its lowest level since July 17 at $1,800.01. US gold futures dipped 0.1% to $1,803.20.
READ MORE
Oil prices gain despite the increase in stockpiles
Gold falls as investors remain optimistic for a vaccine
S.Korea small businesses suffer from new restriction rules
According to Lachlan Shaw, Head of commodity research at National Australia Bank, “we are moving into a new phase in gold as vaccine developments are changing the regime of pandemic-caused disruptions and headwinds to growth that gold markets were pricing in."
US President-elect Joe Biden has begun the transition into the White House following Trump's instruction for him to start receiving daily intelligence briefings.
Edward Meir, ED&F Man Capital Markets analyst said the move from gold to riskier assets by investors could last longer, it is essential for the metal to find support near $1,750- $1,770.
