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Gold slips on U.S. vaccine fillip for economic outlook

· Gold prices slid on Monday as the rollout of a COVID-19 vaccine in the United States drove optimism in wider financial markets with investors banking on a resultant economic recovery.

· Spot gold was 0.6% lower at $1,827.55 per ounce, having earlier fallen as much as 1% to $1,819.35.

· U.S. gold futures settled down 0.6% to $1,832.10.

· “We’re seeing some keener risk appetite in the marketplace, as evidenced by rallying global stock markets, and that’s putting some pressure on safe-haven gold,” said Kitco Metals senior analyst Jim Wyckoff. “A solidly lower U.S. dollar index may be limiting some of the selling pressure.”

· Lifting hopes that the tide is beginning to turn on the pandemic and boosting sentiment for equities, was news that the first shipments of coronavirus vaccines were speeding across the U.S., with inoculations possibly beginning as early as Monday.

· Hopes of a global recovery and a decision to extend trade talks between Britain and the European Union also supported European shares.

· Helping bullion, which is priced in U.S. dollars, was pressure on the greenback from hopes of a $908 billion COVID-19 relief package with lawmakers facing a midnight Friday deadline.

· Gold, considered a hedge against inflation that could result from the unprecedented stimulus unleashed in 2020, has risen more than 20% so far this year.

· Investors were waiting for the U.S Federal Reserve’s two-day policy meeting starting on Tuesday for cues on monetary policy.

· “A fiscal deal is around the corner and meanwhile, the Fed has the ability to step into the fray,” said Daniel Ghali, commodity strategist at TD Securities.

· Silver fell 0.2% to $23.87 an ounce, while platinum was flat at $1,008.94 and palladium declined 0.4% to $2,310.24.

· U.S. Lawmakers announce latest stimulus proposal

Lawmakers released the latest proposal for another round of economic relief on Monday evening, splitting a previous bipartisan proposal into two parts.

The new plan calls for $748 billion in spending for programs that are popular on both sides of the aisle, including an additional $300 per week in federal unemployment benefits and another $300 billion for more loans under the Paycheck Protection Program.

A second $160 billion bill would include the more contentious areas of business liability protections and financial aid to state and local governments.

The latest step toward a stimulus deal comes as investors and Americans at large grapple with a bleak near-term outlook but prospects of economic growth and the possible end of the pandemic in 2021.

· CORONAVIRUS UPDATES:

Global Cases: 73.15M (+505,940)
Global Deaths: 1.62M (+8,263)

U.S. Cases: 16.92M (+178,263)
U.S. Deaths: 307,924 (+1,439)

U.K. Cases: 1.86M (+20,263)
U.K. Deaths: 64,402 (+232)

The U.S. Covid death toll tops 300,000 as vaccine distribution begins

As the U.S. grapples with devastating death tolls and surges in hospitalizations, a historic inoculation effort is underway.

· London to move into top tier of restrictions as UK identifies new Covid variant

London will be placed into England’s toughest tier of coronavirus restrictions from midnight on Wednesday morning following a rapid rise in Covid-19 infection rates.

Health Secretary Matt Hancock on Monday confirmed the move as he addressed lawmakers in the House of Commons. He said British authorities had identified a new variant of the virus that may be linked with the faster spread of cases in southeast England.

“Initial analysis suggests that this variant is growing faster than the existing variants,” Hancock said, adding that, so far, 1,000 cases of the new variant had been identified in England.

· WHO says authorities investigating new COVID-19 variant in England

The World Health Organization is aware of a new variant of COVID-19 that has emerged in Britain, but there is no evidence the strain behaves differently to existing types of the virus, it said on Monday.

· Not all older people can get a Covid vaccine right away. Most will have to wait a while

Shipment of 2.9 million doses of the first U.S.-authorized coronavirus vaccine began Sunday, headed for hundreds of sites around the country. With initial supply limited — the total U.S. population is roughly 330 million — the Centers for Disease Control and Prevention recommends that health-care workers and residents of long-term-care facilities get prioritized in this first phase.

· Singapore approves Pfizer’s Covid vaccine, expects first shots by year-end

Prime Minister Lee Hsien Loong, 68, said he would be among the early recipients in the city-state of 5.7 million people, which has one of the lowest fatality rates globally from the coronavirus. The government said it expects to have secured enough vaccines for everyone by the third quarter of next year.

“My colleagues and I, including the older ones, will be getting ourselves vaccinated early. This is to show you, especially seniors like me, that we believe the vaccines are safe,” Lee said in a national broadcast, adding that the vaccines would be free, voluntary and given first to health-care workers and the elderly.

· President-elect Joe Biden wins Electoral College vote, cementing his victory over Trump

· Attorney General William Barr resigns, effective Dec. 23

Attorney General William Barr will depart the Trump administration before Christmas, President Donald Trump said.

The widely anticipated departure of Barr, the head of the Department of Justice, came just moments after President-elect Joe Biden’s victory over Trump was formalized by the Electoral College.

Deputy Attorney General Jeff Rosen will serve as acting attorney general following Barr’s departure, Trump said.

· U.S. sanctions Turkey over purchase of Russian S-400 missile system

Reference: CNBC, Reuters, Worldometers