Gold Weakens on News of Third Possible Vaccine Against COVID-19

Gold Weakens on News of Third Possible Vaccine Against COVID-19

Posted Tuesday, November 24, 2020 by
Arslan Butt • 1 min read

Gold prices are sliding lower during early trading on Tuesday as the risk sentiment in global markets improves over reports of a third vaccine against COVID-19 with high levels of effectiveness. At the time of writing, GOLD is trading at a little above $1,827.

During the previous session, gold lost more than 2% of its value after AstraZeneca announced that its COVID-19 vaccine was 70% effective during pivotal trials and could go up to 90%. The news, that comes a few days after Pfizer and Moderna announced effective vaccines, boosted the risk appetite of investors.

The safe haven appeal of gold was also dented after US President Donald Trump gave officials the go-ahead to begin the process of transition towards President elect Joe Biden and his team, weakening uncertainty around the results of the presidential elections. In addition, strong economic data revealing a rapid pace of expansion in business activity across the US also weakened the precious metal.

The yellow metal, however, did find support over hopes that Biden could announce a larger fiscal stimulus package to support the US economy. News reports indicate that Biden is planning to appoint former Fed chair Janet Yellen as Treasury Secretary, which could result in more support for the US economy.

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