Spot gold rose 0.5% to $1,884.76 per ounce by 1:57 p.m. EST (1857 GMT). However bullion was nonetheless certain for its worst weekly loss since late September, down 3.4% to this point, primarily damage by preliminary euphoria over an efficient vaccine from Pfizer earlier within the week.
U.S. gold futures settled up 0.7% at $1,886.20. “We have now obtained COVID-19 raging within the U.S. and the uncertainty surrounding that and the potential for some extra financial injury within the coming months; all that’s working in favour of gold market bulls,” Kitco Metals senior analyst Jim Wyckoff mentioned.
Pfizer and BioNTech SE on Monday mentioned their COVID-19 vaccine was greater than 90% efficient based mostly on preliminary trial outcomes.
“Everyone was excited in regards to the vaccine, however then the grim realization units in that it’s going to in all probability not be accessible for common public consumption till late winter or spring and till then … we have to get via some very tough waters,” Wyckoff mentioned.
Additionally supporting bullion, the greenback eased. “There may be concern of a second wave with lockdowns and restrictions and the market has to work via (some) stimulus whether or not we’re in a lame duck scenario or with a brand new president-elect,” mentioned Eli Tesfaye, senior market strategist at RJO Futures. “So, the market sooner or later has to anticipate that money and value within the potential inflation.” Gold is taken into account a hedge in opposition to inflation and foreign money debasement prone to end result from giant stimulus. Silver climbed 1.5% to $24.59 an oz., platinum rose 1% to $888.76 and palladium fell 0.1% to $2,328.98.