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Original title: A crazy month is about to end! Fed and new crown vaccine continue to spread new news, gold rebounds from lows after sharp fall
FX168 Financial News (North America) News YellowGold priceOn Monday (November 30), Georgia continued its decline to a five-month low. The outlook for economic growth fueled by the new crown vaccine casts a shadow over safe-haven assets and will make gold prices their worst month in four years.
In the US market, in the first trades, spot gold fell almost 0.7%, trading at around $ 1,773.74 an ounce, which has fallen 5.6% so far this month. Earlier in the session, gold once hit its lowest level since July 2 at $ 1,764.23 an ounce.
(30 Minute Gold Spot Chart, Source: FX168)
Modena (Moderna) announced that it will submit an emergency use request to regulatory agencies in the US and the EU. The regulatory agency will reportedly review data from its vaccine tests using mRNA technology to determine if it is safe and effective enough.
Experimental studies have shown that this new corona vaccine is more than 94% effective and can protect people from the disease after they have been infected with the new corona virus. Pfizer, another pharmaceutical company using similar technology, has also submitted an application for approval to the United States.
Modena said 20 million doses of the vaccine are expected to be available in the United States by the end of 2020. The United States has purchased 10 million doses and is expected to distribute between 40 and 45 million doses by May next year. Modena plans to produce 500 million to 1 billion doses of this new corona vaccine in 2021.
Modena said she hopes to get UK approval soon. The BBC reported that British regulators have reviewed the data from the Pfizer vaccine and are also reviewing the new corona vaccine jointly developed by AstraZeneca and the University of Oxford.
Progress on the new crown vaccine put pressure on gold prices, but subsequent news from the Fed gave the bulls a temporary respite.
The Federal Reserve said Monday that it will extend the emergency liquidity plan for commercial paper and other major financial markets until March 31. These plans include commercial paper liquidity tools, primary broker credit tools, money market mutual fund liquidity tools, and wage protection plan liquidity tools. They are considered important measures by the Fed to prevent economic downturn. Trigger a financial crisis this spring.
Craig Erlam, an analyst at OANDA, said: “The vaccine news makes the market very optimistic. We have seen some capital outflows from safe-haven assets such as the US dollar and US Treasuries, and the price of gold has followed suit. reflects “.
Although the dollar has fallen to its lowest level in two and a half years, the price of gold continues to fall. The price of gold has fallen more than $ 300 from the all-time high of $ 2,072.50 set in August.
“The price of gold fell below the $ 1850 support level, weakening the short-term trend in gold prices,” said Carlo Alberto De Casa, principal analyst at ActivTrades, in a report.
“Although investors have not forgotten that central banks will be forced to print money for many years to help the economy recover from the new corona pneumonia crisis, they have turned to other assets for faster returns.”
Optimism around the economic recovery brought on by the vaccine has led global stock markets to be expected to post their best performance this month.
Data shows that China’s manufacturing activity expanded at the fastest pace in more than three years in November, which also boosted risk sentiment.
Investors are now paying attention to Fed Chairman Powell’s testimony in Congress this week.
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