Gold jumps over 1% as surging virus cases renew stimulus hopes
· Gold gained more than 1% on Tuesday, bolstered by expectations of more coronavirus relief aid in the United States as mounting COVID-19 cases renewed concerns over the pandemic’s economic toll.
· Spot gold was up 1.4% at $1,852.36 per ounce, while U.S. gold futures settled up 1.3% at $1,855.30.
· “There is the possibility of getting stimulus passed and that is what the gold market has been waiting for,” said Jeffrey Sica, founder of Circle Squared Alternative Investments.
“Most people have come to terms with the fact that the vaccine will stop the next wave, but will have very little to do with the current wave.”
· A staggering COVID-19 U.S. death toll put pressure on lawmakers to roll out relief aid, buoying optimism around a $1.4 trillion bill. Gold, regarded as a hedge against likely inflation and currency debasement, has risen over 22% so far this year amid the unprecedented stimulus unleashed globally.
· Surging infections also led to tighter restrictions being imposed in the Netherlands, Germany and London.
· A weak dollar further enhanced appeal for greenback-denominated bullion.
· Investors also awaited the U.S. Federal Reserve’s meeting starting on Tuesday, with the central bank expected to maintain interest rates at near-zero.
· Gold has resistance at $1,879 an ounce, with a close above the $1,894 level gearing prices to go up to $1,920, said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.
· Silver jumped 2.7% to $24.45 an ounce, and palladium gained 1.9% to $2,336.62. Both metals rose more than 3% earlier in the session.
· “Silver’s dual roles as a precious metal and an industrial material makes it more appealing during times when economic activity is expected to rebound,” said Fawad Razaqzada, market analyst with ThinkMarkets.
· Platinum rose 1.8% to $1,025.08.
· CORONAVIRUS UPDATES:
Global Cases: 73.78M (+578,657)
Global Deaths: 1.64M (+12,477)
U.S. Cases: 17.13M (+194,779)
U.S. Deaths: 310,984 (+2,887)
U.K. Cases: 1.88M (+18,450)
U.K. Deaths: 64,908 (+506)
TH Cases: 4,246 (+9)
TH Deaths: 60
Myanmar Cases: 110,667 (+1,155)
Myanmar Deaths: 2,319 (+27)
· Congressional leaders to meet for second session amid rush to strike Covid relief, funding deal
The top four congressional leaders were set to meet at 4 p.m. Tuesday, seeking to reach an agreement on another round of coronavirus aid. House Speaker Nancy Pelosi set up the meeting with Senate Majority Leader Mitch McConnell, Senate Minority Leader Chuck Schumer and House Minority Leader Kevin McCarthy, marking the biggest effort yet to come to a bipartisan agreement.
The lawmakers released a proposal for another round of economic relief on Monday evening, splitting a previous measure into two parts.
· Top U.S. Congress leaders meet on COVID-19 aid, spending, agree to meet again later Tuesday
Top U.S. congressional leaders were cautiously upbeat after meeting on Tuesday to try to finalize a government funding bill and end a standoff on coronavirus relief, and they agreed to get together later in the evening, aides said.
· FDA staff endorses emergency use of Moderna’s Covid vaccine in a critical step toward approval
The staff of the Food and Drug Administration on Tuesday endorsed the emergency use of Moderna’s coronavirus vaccine, a critical step forward in winning formal clearance to be administered to the public as early as next week.
The staff report is meant to brief the FDA’s Vaccines and Related Biological Products Advisory Committee, which meets Thursday to review Moderna’s request for emergency use authorization.
The group of outside medical advisors recommended Pfizer’s vaccine for emergency use last Thursday, and the FDA approved it the next day. The committee is expected to recommend Moderna’s vaccine. The FDA doesn’t have to follow the committee’s recommendation, but it often does.
· Trump’s plan for $200 Medicare drug cards advances, though hurdles remain
· Biden to pick former Michigan governor Granholm to be energy secretary -sources
While governor, Granholm supported efforts to build advanced battery plants for electric cars in Michigan, despite concerns from some in the auto industry about moving away from gasoline-powered engines. She also pushed through a modest energy standard that required a portion of the state’s energy to be generated by renewable sources.
· Joe Biden selects Pete Buttigieg as Transportation secretary
Buttigieg, who was an opponent of Biden’s during the 2020 primary elections, is expected to play a central role in the incoming president’s plans to restore and repair roads and bridges throughout the U.S.
· U.S. tariffs over currency issue would harm ties with Vietnam -U.S. Chamber
The U.S. Chamber of Commerce urged the U.S. government on Tuesday not to impose tariffs on Vietnam over the alleged undervaluation of its currency, saying Vietnam did not meet the U.S. Treasury’s three-part test for unfair currency practices.
· Facebook will lift temporary political ad ban in Georgia with control of Senate still in play
Facebook is lifting its temporary post-election ban on political ads on Wednesday in the state of Georgia only, as the state prepares for its Jan. 5 runoff election that will determine which party takes control of the Senate.
Facebook said in a blog post Tuesday that the decision to lift the ban in Georgia came after hearing feedback that candidates and other groups wanted the option to advertise on Facebook to reach voters ahead of the runoff.
· EU announces sweeping new rules that could force breakups and hefty fines for Big Tech
Tech giants could soon face hefty fines and stricter controls over their behavior as part of sweeping new rules in the European Union.
The European Commission, the executive arm of the EU, on Tuesday presented two new pieces of legislation that will affect how Big Tech operates. The region has long had concerns about how powerful some companies have become, and how this is a problem for smaller firms looking to compete in the European market.
· MSCI deleting 10 China firms from some indexes, retaining them in others
MSCI Inc said on Tuesday it will delete the securities of 10 Chinese companies from some global indexes after the U.S. imposed restrictions on their ownership, but said it would also launch new versions of several indexes that retain the same securities.
In a press release, MSCI said companies to be deleted include China Communications Construction Co., Hangzhou Hikvision and CRRC Corp.
Reference: CNBC, Reuters, Worldometers
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