Gold prices eased on Monday as the rollout of a Covid-19 vaccine lifted riskier assets, overshadowing expectations of more U.S. fiscal and monetary stimulus.
Spot gold fell 0.2% to $1,836.08 per ounce by 0303 GMT, while U.S. gold futures eased 0.2% to $1,839.90.
“The euphoria around a Covid-19 vaccine will likely overshadow further easing from the Federal Reserve and a fiscal relief package in the near term,” said Howie Lee, an economist at OCBC Bank.
“But gold could rally in 2021 when the vaccine optimism dies down and investors’ focus returns to rising inflation expectations due to the large swathe of monetary and fiscal stimulus the U.S. economy still requires.”
The first shipments of Pfizer Inc and BioNTech SE’s approved coronavirus vaccine in the United States began on Sunday, raising hopes for a faster economic recovery and lifting Asian equities.
Gold, considered a hedge against inflation and currency debasement, has gained 21% so far this year on the back of near-zero interest rates and unprecedented global stimulus.