📈 69% of S&P 500 stocks beating the index - a historic record! Pick the best ones with AI.See top stocks

Gold Down on COVID-19 Worries, Weaker Dollar

Published 11/16/2020, 11:20 PM
Updated 11/16/2020, 11:33 PM
© Reuters.
XAU/USD
-
PFE
-
DX
-
GC
-
GLD
-
MRNA
-

By Adam Claringbull

Investing.com – Gold was down on Tuesday morning in Asia, boosted by rising concern over the number of COVID-19 cases globally offsetting optimism over the latest vaccine development. A weaker dollar also gave the yellow metal a minor boost.

Gold futures inched down 0.07% at $1,886.45 by 12:33 AM ET (4:33 AM GMT). The dollar was down on Tuesday morning.

Though recent appetite for risk has been high, continuing uncertainties brought on by the global COVID-19 pandemic and the unprecedented management of the U.S. presidential transition have maintained prices of the safe-haven asset.

Gold rapidly recovered from an overnight price slump, as investors clarified the likely timelines before a publicly available vaccination program was in place, pushing prices back to near parity with those on Tuesday.

Moderna (NASDAQ:MRNA) Inc released details of a 94.5% efficacy rating for its vaccine candidate, but there is still a long way to go before delivery can be expected. Successful tests of candidates from both Moderna and Pfizer Inc (NYSE:PFE) have increased the chance of a faster than expected U.S. economic recovery, Federal Reserve Vice Chairman Richard Clarida said on Monday.

Expectations of a large U.S. COVID-19 stimulus package are currently on hold due to the highly unusual refusal of President Donald Trump’s administration to allow President-elect Biden to access to briefings and government facilities. This has led to some investors becoming more cautious about when a relief package may be delivered.

In Europe, the coronavirus pandemic is showing no signs of slowing, with case numbers ramping up across the region. Governments are putting in place greater public health restrictions, thus further delaying any promise of economic recovery.

The U.S., too, is seeing a rapid rise in COVID-19 cases, with a number of states, including California, beginning to put in place various measures in an attempt to restrict the spread of the virus.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.