Gold edged higher on Tuesday as investors focussed on the U.S. fiscal stimulus package that is set to be voted on by Congress, with fresh restrictions forced by a new coronavirus strain in the UK providing further support to the metal.
FUNDAMENTALS
* Spot
gold rose 0.1% to $1,878.72 per ounce by 0038 GMT. U.S.
gold futures rose 0.1% to $1,884.60 per ounce.
* A majority of the U.S. House of Representatives voted to move a $900 billion coronavirus aid bill struck by Congressional leaders for a vote on passage on Monday evening.
* Economists expect the package to support the pandemic-ravaged economy and set it up for a stronger recovery next year as vaccines become more widely available.
* A new coronavirus strain in the UK, thought to be 70% more infectious, prompted a lockdown affecting more than 16 million Britons and caused several countries around the world to shut their borders to Britain, putting Asian shares on course for a weaker start.
* Meanwhile, the European Union geared up to start mass vaccinations against COVID-19 just after Christmas after Pfizer and its German partner BioNTech’s vaccines cleared regulatory hurdles on Monday.
* British Prime Minister Boris Johnson said on Monday there were still problems in Brexit trade talks and that Britain would thrive without a deal.
* Holdings in SPDR’s
Gold Trust , the world’s largest
gold-backed exchange-traded fund, rose 0.2% to 1,169.86 tonnes on Monday from 1,167.82 tonnes on Friday.
* Silver rose 0.2% to $26.23 an ounce. Platinum fell 0.5% to $1,004.51 and palladium gained 0.5% to $2,319.46.
DATA AHEAD(GMT)
1330 US Q3 GDP Final
1500 US Nov. Existing Home Sales
2350 Bank of Japan releases minutes of monetary policy meeting held on Oct. 28 and 29
