Gold eased on Tuesday after rising more than 2% in the previous session, while market participants awaited runoff elections for both U.S. Senate seats from Georgia that would determine the future course of fiscal support.

The Georgia runoff elections will decide which party controls the U.S. Senate. A win by Democrats would make it easier for President-elect Joe Biden to push policies such as rewriting the tax code to boosting stimulus. 

Gold is considered a hedge against inflation and currency debasement 

The U.S. Federal Reserve's minutes from the last policy meeting are due on Wednesday. Monetary policy will stay accommodative for "quite some time", Cleveland Fed President Loretta Mester said on Monday.

British Prime Minister Boris Johnson on Monday ordered England into a new national lockdown to contain a surge in COVID-19 cases 

U.S. manufacturing activity picked up at its briskest pace in more than six years in December, extending a recovery in the factory sector.    

Source:Reuters