Gold eases as vaccine optimism counters rising virus cases

INTERNATIONAL – Gold inched lower on Tuesday as optimism over an effective Covid-19 vaccine offset concerns facing its eventual rollout, a subdued dollar and bets for further monetary support as infections surged in Europe and the United States.

Spot gold fell 0.1 percent to $1,887.40 (R29014,58) per ounce by 1156 GMT, but held in a tight $9 range. US gold futures eased 0.1 percent to $1,886.20.

“Gold is mirroring the reaction of really everybody watching the evolution of the vaccines,” and the positive news is clearly keeping a cap on the gold market, said Robin Bhar, an independent analyst.

“But it’s still a long way to go” and long term factors, including likely inflation down the road, continue to be supportive for gold, Bhar added.

Also stemming bullion’s downside, the dollar index was down 0.3 percent.