Spot gold rose 0.5% to $1,884.76 per ounce by 1:57 p.m. EST (1857 GMT). But bullion was nonetheless sure for its worst weekly loss since late September, down 3.4% to this point, primarily damage by preliminary euphoria over an efficient vaccine from Pfizer earlier within the week.
U.S. gold futures settled up 0.7% at $1,886.20. “We have got COVID-19 raging in the U.S. and the uncertainty surrounding that and the potential for some more economic damage in the coming months; all that is working in favour of gold market bulls,” Kitco Metals senior analyst Jim Wyckoff mentioned.
Pfizer and BioNTech SE on Monday mentioned their COVID-19 vaccine was greater than 90% efficient based mostly on preliminary trial outcomes.
“Everybody was excited about the vaccine, but then the grim realization sets in that it will probably not be available for general public consumption until late winter or spring and until then … we’ve got to get through some very rough waters,” Wyckoff mentioned.
Also supporting bullion, the greenback eased. “There is fear of a second wave with lockdowns and restrictions and the market has to work through (some) stimulus whether we’re in a lame duck situation or with a new president-elect,” mentioned Eli Tesfaye, senior market strategist at RJO Futures. “So, the market at some point has to anticipate that cash and price in the potential inflation.” Gold is taken into account a hedge towards inflation and forex debasement more likely to end result from giant stimulus. Silver climbed 1.5% to $24.59 an oz., platinum rose 1% to $888.76 and palladium fell 0.1% to $2,328.98.