El Salvador lawmakers overturn mining ban Bukele called absurd
El Salvador became the first country in the world to ban all forms of metals mining in 2017.
Gold prices edged lower on Monday as the imminent rollout of a covid-19 vaccine in the US, as well as the continuation of talks over a stimulus bill, drove optimism in wider financial markets.
Spot gold dipped 0.8% to $1,824.38 per ounce by 11:45 p.m. EST, having fallen below $1,820 per ounce earlier in the session. US gold futures also fell 0.8% to $1,827.70 per ounce in New York.
European stocks and US equity futures started the week on a positive note, with the first deliveries of the Pfizer-BioNTech SE vaccine arriving in the US on Monday morning.
“We’re seeing some keener risk appetite in the marketplace, as evidenced by rallying global stock markets, and that’s putting some pressure on safe-haven gold,” Kitco Metals senior analyst Jim Wyckoff told Reuters. “A solidly lower US dollar index may be limiting some of the selling pressure.”
Meanwhile, a bipartisan group of lawmakers plans to unveil a $908 billion relief bill on Monday, although a negotiator said there’s no guarantee that Congress will pass it.
Gold, considered a hedge against inflation that may result from the unprecedented stimulus measures unleashed during the covid-19 pandemic, has risen more than 20% so far this year.
However, bullion is heading for its first quarterly loss since 2018 as progress on vaccines and signs of recovery dent demand for the haven metal, even as leading central banks continue to offer support for economies.
This week, investors will keep a close watch on the Federal Reserve’s final meeting of the year, with markets widely expecting fresh guidance on its asset-purchase program.
“A fiscal deal is around the corner and meanwhile, the Fed has the ability to step into the fray,” said Daniel Ghali, commodity strategist at TD Securities.
(With files from Bloomberg and Reuters)
