Gold strikes down as danger positive aspects traction
Investing.com – Gold was down in Asia on Wednesday morning as investors' risk appetite increased on vaccination hopes and the departure from safe havens.
By 12:35 ET (4:35 GMT) down 0.17% to $ 1,801.55.
Gold has continued to decline as stocks boomed. Global stocks hit a record high. The US has passed the 30,000 mark, a new high. Investors are turning away from risk averse assets as vaccine developments add confidence to economic prospects around the world. Safe haven assets like gold are consequently pushed down.
Gold fell above the $ 1,800 mark for the first time since July.
Adding to the current wave of optimism is the official approval of the US President's transition process by Emily Murphy, director of the General Services Administration. There were lingering concerns that President Trump would hold back until the last minute from giving President-elect Joe Biden's new administration access to vital state information and funding, which would lead to a chaotic start for the new regime.
"The mood is very hot as we near the end of a risk-weighted cracker month. So one wonders if the market shows signs of euphoria and expects some follow-up anytime soon." Term, "IG Australia market analyst Kyle Rodda told Reuters.
"But despite all the risks the pandemic poses over the next few months … market participants seem happy to look through it all and position themselves for a post-pandemic world," they added.
On the plus side, however, the Biden administration is widely expected to push for strong COVID-19 relief efforts, especially since it has appointed former Federal Reserve chairwoman Janet Yellen to the role of U.S. Treasury Secretary.
Yellen is widely recognized as a business facilitator with an explicit interest in business equality issues. Hence, gold investors expect relief measures that will lower the value of the greenback and consequently increase the longer-term appetite for the yellow metal.
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