Gold Futures Settle At 5-month Low

Gold prices drifted lower on Monday as demand for the safe-haven asset faded further amid improved risk sentiment due to continued optimism about coronavirus vaccine.

The dollar’s recovery from recent losses too weighed on gold prices. The dollar index, which rose to 91.91, gaining about 0.12%, was last seen at 91.88, well off the day’s low of 91.51.

Gold futures for February ended down $7.20 or about 0.4% at $1,780.90 an ounce, the lowest close in about five months.

Gold futures shed about 5.6% in November.

The most active Silver futures contract for March ended the session with a loss of $0.046 at $22.593 an ounce, while Copper futures for March settled at $3.4380 per pound, gaining $0.0215.

Biden’s transition to power officially kicked off last week, ending a major uncertainty. On the vaccine front, trial successes from Pfizer Inc. and Moderna Inc. have buoyed hopes that a Covid-19 vaccine is coming soon.

The U.K. government said it has signed a deal for an additional 2 million doses of mRNA-1273, Moderna’s vaccine candidate against Covid-19, bringing the total to 7 million doses for the U.K.

The U.K. now has access to enough doses of Moderna’s vaccine candidate for about 3.5 million people.

Meanwhile, the latest numbers show a stabilization in new coronavirus infections in Europe, with Britain and France preparing to ease some of their lockdown restrictions.

Data showing that China’s factory activity expanded at the fastest pace in more than three years this month contributed as well to improved risk sentiment.

The material has been provided by InstaForex Company – www.instaforex.com

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