Gold edges higher as U.S. stimulus bets outweigh vaccine hopes

GOLD - SINGPORE. Gold prices ticked higher on Monday, as grim U.S. jobs data bolstered hopes for more fiscal stimulus, although optimism around coronavirus vaccine rollouts kept gains in check.

Monday (7/12) at 13.20 WIB, spot gold prices rose 0.2% to $1,841.93 per ounce, while U.S. gold futures were up 0.2% at $1,844.20.

"Softer jobs growth and tighter social mobility restrictions ostensibly lower the hurdle for a policy response from (U.S.) Congress," said Stephen Innes, chief global market strategist at financial services firm Axi.

Data on Friday showed the U.S. economy added the fewest jobs in six months in November.

Talks over a fresh pandemic relief package gathered momentum on Friday, as bipartisan U.S. lawmakers worked to put the finishing touches on a new $908 billion bill.

While the gold market might be disappointed with the size of the package, markets will likely take support from the bipartisan nature of the deal that suggests further compromise in the U.S Congress ahead, Innes said.

Gold is seen as a hedge against inflation that could result from large stimulus.

Raising geopolitical uncertainty, the United States is preparing to impose sanctions on at least a dozen Chinese officials, according to sources familiar with the matter.

However, gold's gains were capped as Britain prepared to become the first country to roll out the Pfizer/BioNTech COVID-19 vaccine this week.

While vaccine news is seen as bearish for gold, it is not going to stop governments from pursuing easier monetary and fiscal policies, said ED&F Man Capital Markets analyst Edward Meir in a note.

Gold has resistance at $1,850 an ounce, with a close above that pivot area setting the scene for a test of the resistance line at $1,920 an ounce, Jeffrey Halley, a senior market analyst at OANDA said in note.

Silver fell 0.1% to $24.15 per ounce and platinum dropped 1% to $1,044.00, while palladium gained 0.7% to $2,359.05.