Gold falls as stocks rise amid cheering pollen, hopefully stimulus support

(Reuters) – Gold prices fell on Wednesday as encouraging vaccine developments pushed investors towards riskier stocks, although hopes for more US stimulus kept bullion near its two-week highs recorded in the previous session.

Spot gold fell 0.3 percent to $ 1865.46 an ounce by 0309 GMT, after hitting its highest level since November 23 at $ 1875.07 on Tuesday, while US gold futures fell 0.3 percent to $ 1870.20.

“Gold still has some firepower from all the stimulus, despite the fact that vaccines are rolling out … (the stimulus) will provide gold with a lot of backwind by The end of the year Meir.

On Tuesday, the Trump administration proposed a $ 916 billion package including liability protection and state and local government aid, which Democratic and Republican lawmakers have seen as progress in the ongoing stimulus talks. Gold is seen as a hedge against inflation that may result from the unprecedented stimulus pumped into the economy this year.

Johnson & Johnson, which has rebounded in Asian stocks to record highs, said it may get results from late-stage trials of a single-dose COVID-19 vaccine developing it earlier than expected. Pfizer Inc. has removed the next hurdle in the race to obtain approval for the emergency vaccine in the United States after a regulatory agency released documents that raised no new issues about its safety or efficacy. Michael Langford, CEO of consulting and advisory firm AirGuide, said the stimulus measures will be essential because it weakens the dollar and generates more liquidity that will move into gold.

He added that the markets hope that the stimulus will take place by next week and that gold may go towards $ 1900 by the end of the year.

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Silver fell 0.7 percent to $ 24.38 an ounce, while platinum rose 0.6 percent to $ 1028.17, and palladium rose 0.1 percent to $ 2311.87.

(Prepared by Nakul Iyer in Bengaluru; Editing by Ramakrishnan M.)

Outside the US +91 80 6749 0417; Reuters reporter: [email protected]

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