Gold eases as vaccine rollouts expand; Fed meet eyed

Gold prices inched lower on Wednesday as rapid progress in vaccine rollouts sparked hopes of a swift economic revival, with investors keeping a close watch on stimulus talks and the Federal Reserve's policy statement.

FUNDAMENTALS

Spot gold fell 0.1% to $1,852.01 per ounce by 0100 GMT after jumping 1.4% in the previous session. US gold futures were little changed at $1,855.60.

Moderna Inc's COVID-19 vaccine appears set for regulatory authorisation in the United States this week, while rollouts of the country's newly approved vaccine were expanded.

Across the Atlantic, Europeans are set to start getting coronavirus vaccines before the new year after the regional drug regulator accelerated its approval process.

Top US congressional leaders agreed to meet again on Tuesday evening after an initial round of talks, to try to finalise a government funding bill and end a standoff on coronavirus relief, aides said.

The US Federal Reserve is expected to keep interest rates pinned near zero and to signal where rates are headed in the coming years at it's final policy meet of the year. The Fed's policy statement is due at 1900 GMT.

Many analysts also expect new guidance on how long the Fed will keep up its massive bond-buying program.

Gold is seen as a hedge against inflation and currency debasement.

Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.10% to 1,170.15 tonnes on Tuesday.

Silver dropped 0.1% to $24.46 per ounce. Platinum fell 0.2% to $1,034.25 and palladium was down by 0.1% at $2,315.09.