Gold steadies as surging COVID-19 cases offset vaccine roll-outs
- Investors now await policy meetings of the US Federal Reserve starting on Tuesday and the Bank of England on Thursday.
Gold prices were little changed on Tuesday as investors took stock of surging COVID-19 cases, vaccines inoculations and negotiations over a US coronavirus fiscal relief package.
FUNDAMENTALS
Spot gold was steady at $1,826.68 per ounce by 0118 GMT, while US gold futures eased 0.1% to $1,829.70.
COVID-19 vaccinations in the United States began on Monday with a New York City intensive care unit nurse becoming the first to receive the vaccine, while Canada also began injecting frontline healthcare workers and elderly nursing home residents.
Meanwhile, coronavirus deaths in the United States crossed 300,000 on Monday, according to a Reuters tally.
Coronavirus infections continued to surge globally, prompting tighter restrictions and lockdowns in the Netherlands, Germany and London.
Market participants also kept a close watch on US Congressional talks over a fiscal coronavirus stimulus package, with both parties attempting to reach a deal split into two parts on Monday.
Leaders of both parties appeared more upbeat over a pandemic relief aid bill likely to be attached to a critical spending measure that must be passed by Friday to avert a government shutdown.
Gold is seen as a hedge against inflation and currency debasement.
Investors now await policy meetings of the US Federal Reserve starting on Tuesday and the Bank of England on Thursday.
Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.4% to 1,171.32 tonnes on Monday.
Silver rose 0.2% to $23.87 an ounce. Platinum fell 0.1% to $1,006.54 and palladium gained 0.2% to $2,296.98.
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