PRECIOUS-Gold rises as Democrat sweep in U.S. Senate race lifts stimulus hopes

  • Reuters
  • Commodities News
PRECIOUS-Gold rises as Democrat sweep in U.S. Senate race lifts stimulus hopes

Jan 7 (Reuters) - Gold prices edged higher on Thursday, recovering from a sharp decline in the previous session, as investors cheered a Democratic win in the U.S. Senate race that is expected to unleash more fiscal stimulus.

FUNDAMENTALS

* Spot gold XAU= rose 0.2% to $1,922.81 per ounce by 0040 GMT, having dipped as much as 2.5% in the previous session. U.S. gold futures GCv1 climbed 0.8% to $1,923.40.

* After a complete sweep of the two U.S. Senate seats, Democrats now have narrow control of both chambers of Congress, making it easier to advance legislative priorities from coronavirus relief to climate change. However, ratcheting up tensions, hundreds of supporters of President Donald Trump stormed the U.S. Capitol on Wednesday in a bid to overturn his election defeat, forcing Congress to postpone a session that would have certified President-elect Joe Biden's victory. The Federal Reserve was nearly unanimous in its decision last month to leave its bond-buying program unchanged, according to minutes of the U.S. central bank's December policy meeting. More Americans were hospitalized with COVID-19 on Wednesday than at any time since the pandemic began, as total coronavirus infections crossed the 21 million mark. In Europe, a second COVID-19 vaccine won regulatory approval and the Netherlands belatedly launched its vaccination campaign as European countries accelerated a patchy drive to defeat the pandemic. Perth Mint's gold product sales in December eased from the previous month but robust investment demand for the safe-haven metal led average monthly 2020 shipments to double from the prior year. Silver XAG= shed 0.4% to $27.19 an ounce. Platinum XPT= was flat at $1,101.33, while palladium XPD= eased 0.1% at $2,437.23.

DATA/EVENTS (GMT) 0700 Germany

Industrial Orders MM

Nov 1000 EU

HICP Flash YY

Dec 1000 EU

HICP-X F&E Flash YY

Dec 1000 EU

Consumer Confid. Final Dec 1330 US

International Trade

Nov 1330 US

Initial Jobless Clm

Weekly 1500 US

ISM N-Mfg PMI

Dec

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