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Gold prices fell as much as 1.8% on Friday as a broader market sell-off weighed on the metal along with a firm dollar, while hopes for further stimulus from the U.S. kept bullion on track for its first weekly gain in three.

Spot gold fell 1% to $1,851.50 per ounce, retreating from a two-week high hit on Thursday. The metal was up 1.4% so far this week.

·         Gold futures fall for the session, post a gain for the week

Gold futures declined on Friday as the U.S. dollar saw modest strength. Prices posted a gain for the week, however, buoyed by expectations for further fiscal stimulus under the newly inaugurated President Joe Biden, which could weaken the dollar and lift dollar-denominated prices of gold. February gold GCG21, -0.03% fell $9.70, or 0.5%, to settle at $1,856.20 an ounce. For the week, prices based on the most-active contract were up 1.4%, FactSet data show.

 

·         “Regardless of the asset class everything from equities to agricultural to softs are selling off and a lot of emphasis is on whether the stimulus could be passed and whether the (COVID-19) vaccine rollout could be effective,” said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

The strength in the dollar was also weighing on bullion with benchmark U.S. Treasury yields firm above 1%, Streible added.

·         U.S. President Joe Biden has proposed a $1.9 trillion coronavirus relief plan, though some Republicans expressed concerns over the amount.

 

·         Global equities benchmarks slipped off record highs and grains futures fell, while the dollar edged higher against key rivals.

 

·         CORONAVIRUS UPDATES:

Global Cases: 99.73 (+430,495)
Global Deaths: 2.13M (+9,024)

No. 1

U.S. Cases: 25.68M (+121,334)

U.S. Deaths: 429,296 (+1,650)

 

No. 2 -6

India Cases: 10.66M (+12,921)

Brazil Cases: 8.84M (28,323)

Russia Cases: 3.71M (+21,127)

UK Cases: 3.64M (+30,004)

France Cases: 3.05 (+18,436)

 

Asian Updates:

No. 38

Japan Cases: 360,661 (+4,587)
Japan Deaths: 5,019 (+84)

 

No. 71

Myanmar Cases: 137,574 (+476)
Myanmar Deaths: 3,062 (+17)

 

No. 83

China Cases: 88,991 (+80)
China Deaths: 4,635

No. 86

South Korea Cases: 75,084 (+392)
South Korea Deaths: 1,349 (+12)

 

No. 126

Thailand Cases: 13,500 (+198)
Thailand Deaths: 73 (+1)

 

 

·         Boris Johnson says some evidence new Covid variant in the UK may be more deadly

 

·         Biden to impose travel restrictions on South Africa, U.K. and Brazil to mitigate new Covid strains

 

·         Biden says nothing can change the trajectory of the Covid pandemic over the next several months

 

·         CDC director says federal government does not know how much Covid vaccine the U.S. has

The director of the Centers for Disease Control and Prevention warned Sunday that the federal government does not know how much coronavirus vaccine the nation has, a complication that adds to the already herculean task before the Biden administration.

“I can’t tell you how much vaccine we have, and if I can’t tell it to you then I can’t tell it to the governors and I can’t tell it to the state health officials,” CDC director Dr. Rochelle Walensky told “Fox News Sunday.”

“If they don’t know how much vaccine they’re getting not just this week but next week and the week after they can’t plan. They can’t figure out how many sites to roll out, they can’t figure out how many vaccinators that they need, and they can’t figure out how many appointments to make for the public,” Walensky said.

In a dig at the Trump administration, Walensky said the lack of knowledge of vaccine supply is indicative of “the challenges we’ve been left with.”

 

·         'We can't wait:' Biden pushes U.S. Congress for $1.9 trillion in COVID-19 relief

The Biden administration and Democratic and Republican lawmakers discussing a new $1.9 trillion in coronavirus relief agreed on Sunday that the most important priority should be producing and efficiently distributing a vaccine.

 

·         Germany expects AstraZeneca to deliver 3 million COVID-19 vaccine doses in February

 

·         EU says it will make vaccine companies respect supply contracts: Michel

The European Union will make pharmaceutical companies respect contracts they have signed for the supply of COVID-19 vaccines, European Council President Charles Michel said on Sunday.

 

·         Italy says delays in vaccine supplies unacceptable

Italian Prime Minister Giuseppe Conte lashed out at suppliers of COVID-19 vaccines on Saturday, saying delays in deliveries amounted to a serious breach of contractual obligations.

 

·         Portugal holds presidential election as COVID-19 cases spiral

Portuguese voters - largely confined to their homes due to a strict COVID-19 lockdown - will pick a new president on Sunday, but many fear going to the polls could worsen a surge in coronavirus cases and low turnout is expected.

 

·         Hong Kong locks down thousands for compulsory COVID-19 testing

 

·         China sees fall in new COVID-19 cases amid strict local lockdowns

 

·         Wuhan returns to normal as world still battles deadly Covid pandemic

 

·         China surpasses U.S. as largest recipient of foreign direct investment during Covid pandemic

China brought in $163 billion in inflows last year, compared to $134 billion attracted by the U.S., the United Nations Conference on Trade and Development wrote in a report released on Sunday.

In 2019, the U.S. received $251 billion in inflows and China received $140 billion.

Overall, the report found that foreign direct investment tanked globally, as the Covid-19 pandemic brought countries large and small to virtual stand-stills.

Despite China surpassing the U.S. in the flow of foreign direct investment in 2020, the total stock of foreign investment remains much larger in the U.S. than in China, according to data compiled by the Organization for Economic Cooperation and Development.

Other economic data have also suggested that China has borne the brunt of the pandemic more nimbly than its peers. Beijing reported 2020 GDP growth of 2.3% earlier this month, and is expected to be the only major economy to report a positive annual growth rate.

The United Nations report comes one day before China’s President Xi Jinping will deliver an address at a virtual gathering of the World Economic Forum. President Joe Biden is not expected to attend the event.

 

·         China-Taiwan tensions rise days into Biden presidency

Chinese air force planes including 12 fighter jets entered Taiwan’s air defence identification zone for a second day on Sunday, Taiwan said, as tensions rise near the island just days into U.S. President Joe Biden’s new administration.

 

·         Trump’s Senate impeachment trial will start the week of Feb. 8, Schumer says

Former President Donald Trump’s Senate impeachment trial will start the week of Feb. 8, allowing the chamber time to fill out President Joe Biden’s Cabinet, Majority Leader Chuck Schumer said Friday.

The process will start Monday when the House sends its impeachment article to the Senate. The chamber charged Trump with inciting an insurrection against the government on Jan. 6. Senators will get sworn in as jurors on Tuesday, then the House impeachment managers and the ex-president’s defense will have time to draft legal briefs.

 

·         U.S. Senate's Schumer says Trump impeachment trial will be fair but move quickly

 

·         Senate committee on Friday overwhelmingly supported former Fed Chair Janet Yellen as Biden’s Treasury secretary. If confirmed, she would be the first woman to lead the department.

 

·         Biden administration to unveil more climate policies, urges China to toughen emissions target

 

·         Biden speaks with France's Macron, seeks to strengthen ties

 

·         U.S. will work with Israel to build on regional normalization agreements: Biden national security adviser

 

·         EU should punish Putin for Navalny arrest by cutting money flows: Germany's Weber

The European Union should punish Russian President Vladimir Putin for the arrest of Kremlin critic Alexei Navalny and thousands of his supporters with targeted financial sanctions, the leader of the bloc’s largest political alliance said on Sunday.

 

·         Japanese govt's approval rating weakens over pandemic response: poll

 

·         Global green bond issuance hit new record high last year

Global green bond issuance reached a record high of $269.5 billion by the end of last year and could reach $400-$450 billion this year, a report by the Climate Bonds Initiative (CBI) showed on Monday.

 

·         Bank of England told to stop buying 'high carbon' bonds

A group of British members of parliament said on Monday that the Bank of England should stop buying bonds from businesses whose activities accelerate global warming.

 

 

Reference: CNBC, Reuters, Worldometers, Market Watch