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In trading on Wednesday (18), gold futures prices closed lower due to updates on the new treatment of the crown and preventive measures, leading the safe-haven metal to experience its first two-day drop. since the end of October.
FXTM Senior Research Analyst Lukman Otunuga said: “The latest news on vaccine development has generated optimism, supported risk sentiment and ultimately put pressure on safe haven assets.”
Earlier Wednesday, Pfizer (PFE-US) stated that the new corona candidate vaccine developed in collaboration with BioNTech SE (BNTX-US) was 95% effective in the final analysis of clinical trials, thus providing a more optimistic view of the research. clinic. Progress.
Previously, Moderna (MRNA-US) announced on Monday that the candidate vaccine is currently confirmed in the final stage of research to reduce the effectiveness of the infection rate of the new coronavirus by 94.5%.
But on the other hand, the number of confirmed cases of new crowns continues to rise dramatically. According to data compiled by Johns Hopkins University, the number of new crowns worldwide rose to 55.7 million on Wednesday and the death toll. exceeded 1.3 million.
“The rise in new crown cases in Europe and the United States remains disturbing and alarming. In the short term, gold may gain support from the weakening dollar until more news on vaccines is released.”
- The price of gold futures for December delivery fell $ 11.20, or about 0.6%, to settle at $ 1,873.90 an ounce.
Gold closed 0.1% lower the day before. According to data from FactSet, another drop on Wednesday means that gold has seen a two-day drop for the first time after October 29.
- December silver futures prices fell 20 cents, or 0.8%, to settle at $ 24.448 an ounce. The previous day’s drop was 0.6%, which was the first consecutive drop since the three business days ended on October 26.
Kitco.com senior analyst Jim Wyckoff said the market is now engulfed by the idea that “vaccines will come out in the next few months and the economy will get great support,” but he also understands that “the epidemic will spread through the whole world, including Europe and the United States. Very severe. “
Optimistic investors still believe that the long-term trajectory of gold is higher, because stimulus measures from the central bank and government financial policies will support gold.
However, once effective vaccines and therapies have been successfully developed, they may not become widely distributed within a few months. At the same time, millions of people continue to suffer the economic impact of epidemic prevention measures.
Carlo Alberto De Casa, chief analyst at ActivTrades, said: “Risk preference sentiment still dominates the market, but we are seeing interesting challenges between risk and general uncertainty because central banks are still forced to print money and La The new crown’s continued existence will keep the economy damaged for a long time. “
Following the release of economic data on Wednesday, gold moderated its decline slightly. The number of new homes started in the United States in October increased 4.9% annually to 1.53 million, and building permits were stable at an annual rate of 1.55 million, indicating that economic activity It has stalled a bit.
Trade in other metallic raw materials
- Copper futures for December delivery were unchanged, closing at $ 3,198 per pound.
- The price of platinum futures for January delivery rose 1.5% to close at $ 950.90 an ounce.
- Palladium futures for December delivery rose 1.2% to close at $ 2,354 per pound.
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