Picture used for illustrative purpose. File

Gulf Today Report

Gold prices slumped on Monday as riskier assets jump due to COVID-19 vaccine.

Spot gold fell 0.3% to $1,833.21 per ounce by 06:15 GMT, while US gold futures eased 0.3% to $1,838.10.

Howie Lee, an economist at OCBC Bank said: "the euphoria around a COVID-19 vaccine will likely overshadow further easing from the Federal Reserve and a fiscal relief package in the near term."

The United States sent out its first shipment of coronavirus vaccine on Sunday, aiding Asian equities. 

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However, gold is on the edge as a $908 billion US COVID-19 relief could be introduced later today.

Investors are hopeful for the outcome of the upcoming US Federal Reserve meeting with optimism for increased purchase of longer-dated Treasuries to contain a rise in yields that also pressured the dollar.

Gold serves as a shield against inflation and currency debasement, it has advanced by 21% this year relying on almost zero interest rates and unprecedented global stimulus.

Silver fell 0.1% to $23.90 an ounce, while platinum gained 0.8% to $1,016.57 and palladium rose 0.3% to $2,325.65.