[ad_1]
In trading on Monday (9), gold futures recorded the biggest drop in a day in more than 7 years, due to the positive news about the new candidate for the coronavirus vaccine, which raised the performance of the US dollar and the government bonds, pressuring him.
Pfizer (PFE-US) and BioNTech (BNTX-US) announced Monday that their new corona vaccine candidates are 90% effective in preventing the new corona virus.
Rhona O’Connell, StoneX’s EMEA and Asian Market Analysis Director, said Monday: “Thousands of volunteers participated in the vaccine research. The vast majority of them arguably avoided infection. Although the research has not been completed. In this turbulent market, gold’s response is reasonable. “
- The price of gold futures for December delivery was down US $ 97.30, or about 5%, to settle at US $ 1,854.40 an ounce.
Based on Dow Jones market data, this is the biggest one-day drop since June 2013 for the most actively traded contract.
- Silver futures prices in December fell 1.96 US dollars, or 7.6%, to close at 23.701 dollars an ounce.
Last week, gold revenue posted the largest weekly increase of 3.8% in three months, while silver rose 8.5% during the same period, which was the largest weekly increase since the week ending August 7.
As the price of safe haven metals slumped, the yield on the 10-year Treasury note rose to 0.95% from 0.821% last Friday. At the same time, the ICE dollar index rose 0.7%.
Rising government bond yields and the appreciation of the US dollar will reduce the attractiveness of non-performing US dollar-denominated assets, such as gold and silver, to foreign buyers.
The vision of the new crown candidate vaccine has always been seen as the short-term development of gold, because the new crown vaccine can help a stronger economic recovery.
Kitco.com Senior Analyst Jim Wyckoff said: “As the epidemic in Europe and the United States seems to worsen, the global market is finally looking forward to the good news they have been waiting for several months.”
The US stock market rose. The Dow Jones was up more than 800 points or 2.95%, and the S&P 500 was up 1.17%. Market sentiment was skewed towards risk, exacerbating the decline in gold.
Jeff Wright, executive vice president of GoldMining Inc., said that Democrat Biden’s victory in the US presidential election was also one of the forces that pushed gold’s slide on Monday.
“The market is setting prices to divide the government. Because Democrats are in the White House but Republicans control the Senate, there may be a” real engagement period. “He added that he was heading to anticipate the launch of a package of large-scale stimulus in February.
Wright believes that the Fed’s monetary policy may remain unchanged until 2021, so the price of gold may recede and enter a consolidation, and then move toward $ 2,000.
Trade in other metallic raw materials
- Copper futures prices for December delivery rose less than 0.1% to close at $ 3.156 a pound, below an intraday high of $ 3.208.
- The price of platinum futures for January delivery fell 3.6% to close at $ 867.40 an ounce.
- Palladium futures for December delivery fell less than $ 1 to settle at $ 2,499.20 a pound.
Palladium closed at $ 2,500 last Friday, up 12.8% last week, the biggest weekly gain since the week ending March 27.
[ad_2]
