Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Gold Down on Vaccine Anticipation

Commodities Nov 23, 2020 11:56PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Adam Claringbull

Investing.com – Gold was down on Tuesday morning in Asia as more vaccine good news arrives and U.S. business activity rises at the quickest rate in five years. The U.S. dollar and risk-on activity are drawing investor interest away from the safe-haven metal.

Gold futures were down 0.90% at $1,821.25 by 12:56 AM ET (4:56 AM GMT).

The news that at least one vaccine, and possibly three, will be rolled out before Christmas. The U.S. has said that it will likely start vaccinations using the Pfizer Inc (NYSE:PFE) vaccine on around Dec. 12, while both Moderna Inc (NASDAQ:MRNA) and AstraZeneca's (LON:AZN) candidates are expected to be approved by various governments in the near future.

The perception that there is and end in sight for the COVID-19 pandemic is spurring investor positivity, with a drive toward higher risk assets sending stocks rocketing and, conversely, dragging gold down.

The dollar was also buoyant earlier in the session, with the double effects of good news on the U.S. business activity front and also, finally, an acceptance of a change of administration by U.S. President Donald Trump.

U.S. business activity has grown at the fastest rate in five years in November, with the U.S. manufacturing purchasing managers index (PMI) leading the way at its highest growth rate since 2014, with a reading of 56.7. The services PMI also exceeded expectations, rising to 57.7 in November.

Investors also await the minutes from the Federal Reserve's latest meeting, as well as further data for jobless claims and GDP, due on Wednesday before the Thanksgiving holiday.

Added to this boost for risk-positive investments is the news that Trump has finally allowed the official presidential transition to take place. Previously, he had refused to permit President-elect Joe Biden’s incoming administration access to critical government departments and funding.

The shift from Trump means that when the new administration takes over on Jan. 20, it will have had time to prepare and ensure an orderly transition, avoiding a lengthy, and possibly disruptive, period where it comes to grips with the functions of governing. The prospect of a less-tumultuous few months has decreased the appetite for safe-haven assets.

Gold Down on Vaccine Anticipation
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Muhammad Waqas
Muhammad Waqas Nov 24, 2020 1:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email