Yellow Metal Rises As Monday's Move Reversed

The yellow metal has seen rangebound trade in Asia-Pac hours on Tuesday, last up $4.22 at 1877.92. Gold finished lower on Monday, slipping as risk on sentiment took hold even as the U.S. dollar gained into year end.

• Risk appetite was boosted after U.S. President Trump signed off on the coronavirus relief bill, with liquidity thinned out in the festive season. The news that U.S. Pres-elect Biden is planning to invoke the Defense Production Act to boost the production of Covid-19 jabs lent further support to risk appetite.
• Gold rose in Asia as markets assess the chances of the coronavirus relief package making it through the Senate. Current indications are that the Republican controlled Senate will not support the increased amount, casting further uncertainty on the process. If the measure does pass, the increased measures will add a further $400bn to the bill. As a result the U.S. dollar receded while gold gained slightly.