© Bloomberg. A selection of gold bars of various weights sit at Gold Investments Ltd. bullion dealers in this arranged photograph in London, U.K., on Wednesday, July 29, 2020. Gold held its ground after a record-setting rally as investors awaited the outcome of a Federal Reserve meeting amid expectations policy makers will remain dovish, potentially spurring more gains. Photographer: Chris Ratcliffe/Bloomberg
(Bloomberg) — Gold extended its biggest fall in more than three weeks as President Joe Biden prepared to unveil big spending plans after announcing major progress on rolling out vaccines.
Biden said 90% of U.S. adults will be eligible for Covid-19 vaccines by April 19, boosting risk appetites even as they linger around new strains of the virus. The president will also this week unveil major plans to reboot the U.S. economy and boost employment.
Gold is heading for its first quarterly decline since 2018 as a nascent global recovery reduces the safe-haven’s appeal. A stronger-than-expected dollar and rising bond rates have also dragged bullion down from its record high in August last year.
Spot bullion was 0.2% lower at $1,709.34 an ounce by 10:18 a.m. Shanghai time, putting it on course for the lowest close since March 8. Palladium extended its biggest one-day fall since November. Platinum and silver declined. The Bloomberg Dollar Spot Index was flat.
In a speech on Wednesday, Biden is expected to focus on infrastructure as his administration aims to reshape the post-pandemic U.S. economy and government. Investors are also on alert for any more fall-out from the implosion of hedge fund Archegos Capital Management.
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