Gold prices edged higher, after dropping over 1% in the previous
session, as concerns over the economic fallout from surging Covid-19 cases
outweighed positive vaccine news
By Eileen Soreng
(Reuters) - Gold
prices edged higher on Thursday, after dropping over 1% in the previous
session, as concerns over the economic fallout from surging COVID-19 cases
outweighed positive vaccine news.
Spot gold rose
0.3% to $1,869.51 per ounce by 0339 GMT.
U.S. gold futures
were 0.4% higher at $1,869.30.
"Gold traders
are trying to strike a balance between a positive vaccine news versus a rising
number of coronavirus
cases around the globe," said Margaret Yang, a strategist with DailyFx,
which covers currency, commodity and index trading.
Although the vaccine
may affect the medium- to long-term trend of gold prices, monetary and fiscal
stimulus are needed in the near-term to shelter the global economy, Yang said.
European Central
Bank President Christine Lagarde signalled further support for the economy on
Wednesday as the pandemic intensified in Europe, with cases expected to spike
in winter.
Gold tends to
benefit from widespread stimulus measures from central banks because it is
considered a hedge against inflation and currency debasement.
Risk appetite has
been boosted by hopes of a successful vaccine, but analysts say it may take a
long time before one becomes publicly available.
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