Gold falls as Biden begins transition

Gulf Today Report

Gold declined on Wednesday, a four-month low due to investors taking on riskier assets as US President-elect begins transition and COVID-19 vaccine looking promising.

Spot gold eased 0.2% to $1,803.51 per ounce by 03:27 GMT. On Tuesday, it had hit its lowest level since July 17 at $1,800.01. US gold futures dipped 0.1% to $1,803.20. 

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According to Lachlan Shaw, Head of commodity research at National Australia Bank, “we are moving into a new phase in gold as vaccine developments are changing the regime of pandemic-caused disruptions and headwinds to growth that gold markets were pricing in."

US President-elect Joe Biden has begun the transition into the White House following Trump's instruction for him to start receiving daily intelligence briefings.

Edward Meir, ED&F Man Capital Markets analyst said the move from gold to riskier assets by investors could last longer, it is essential for the metal to find support near $1,750- $1,770.