Gold prices finally stopped declining and slowly regains losses on Wednesday morning. This inspires a proper amount of optimism and faith in the future success of the metal. The main attention of market participants has now switched to news about the progress of the negotiation process regarding the financial incentive program in the US. In addition, the approval of Pfizer's coronavirus vaccine in the UK was welcomed with enthusiasm. The latter, of course, was not a very good factor for the precious metals market, which increased the existing pressure.

The price of gold futures contracts for February delivery on the electronic trading platform in New York rose 0.43%, which sent it to $1,822.65 per troy ounce.

The price of silver futures contracts for February delivery also increased by 0.28%, which sent it to $24.07 per troy ounce.

As it became known, the UK was the first country to approve a vaccine developed jointly with Pfizer and BioNTech for use in the fight against the coronavirus pandemic. Thus, it will be possible to start the vaccination in as early as next week.

Despite the fact that the vaccine, for gold, is like a red rag for a bull - a signal to a possible reduction in the cost - some analysts say that, at the moment, the precious metal should not give in to excessive panic. First, the optimism about universal vaccination is too far-fetched, since it will be a long time before mass production of the drug begins. Launching this process is a serious and long-term task. Second, market participants completely cut off the presence of a fairly large number of negative fundamental factors, and they can shoot at any time and spoil the whole ideal picture. In this regard, note that there will be a period of time when the hype will pass, and its place will be taken by a negative trend that forces investors to quickly fix profits in the risky asset sector and buy gold that has not yet become too expensive. It is at this point that the precious metal will move away from its minimum values and again move rapidly upwards. And if you believe the experts, it will come very soon.

Another factor that has a significant impact on gold is the renewed discussion of the program of financial incentives in the US, which was actively conducted before the presidential elections in the country. However, it was not possible to reach a consensus at that time. On Tuesday, it became known that Congress intends to start a new round of negotiations on the bill, which involves support in the amount of 1.4 trillion dollars. This is the amount that will be needed to ensure that the government's work continues even in the midst of the COVID-19 pandemic.

However, there is still a certain amount of uncertainty about whether the incentives will be accepted, which, of course, negatively affects the mood of investors. Although there are no serious concerns that the stimulus will not start yet. The precious metals market can only wait for the government's decision.

The new stimulus program is clearly much smaller than the one that Donald Trump was so eager to adopt before the presidential elections.

The price of palladium is also up 0.37% on Wednesday, which forces it to move to the level of $ 2,414.86 per troy ounce. The price of platinum, on the contrary, is reduced by 0.28%, which sends it to the level of 995.63 dollars per ounce.

Copper futures for March delivery are down 0.48%, sending it to $3.4867 per pound.