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Gold nosedived on COVID vaccine/therapies and Fed’s forced QQE tapering
Gold (XAU/USD-spot) made a 4-month low around 1831.08 in the mid-U.S. session Tuesday, nosedived almost -2.20% on COVID vaccine and Fed’s forced QQE tapering as Fed has to return $455B unused TSY equity amid scheduled expiry and no-extension of various lending instruments u/s 13(3) following the ‘bizarre letter’ from the U.S. Treasury Secretary Mnuchin. Although CARES Act 2.0 talks are again in progress, there are significant differences between Democrats and Republicans; most likely it may be a mini targeted fiscal stimulus for around $1T or even $500B against earlier expectations of $2T. This is also negative ... (full story)