Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Gold dips as vaccine progress offset worries over rising cases

Published 19/11/2020, 02:04 am
© Reuters
XAU/USD
-
XAG/USD
-
PFE
-
GC
-
SI
-
PA
-
PL
-

* Pfizer to apply for emergency U.S. OK for vaccine

* Platinum market seen in deficit this year and next -WPIC

* Graphic tracking world spread of coronavirus: https://tmsnrt.rs/3mvcUoa (Updates prices)

By Sumita Layek

Nov 18 (Reuters) - Gold prices eased on Wednesday as optimism about Pfizer's successful vaccine trials countered concerns over rising coronavirus infections and bets for further economic support.

Spot gold XAU= was down 0.3% to $1,872.38 per ounce by 01:57 p.m. EST (1857 GMT). U.S. gold futures GCv1 settled down 0.6% at $1,873.90.

"The rollout of positive vaccine developments is reducing gold's lure as a safe haven. (Although) it still seems to be in a trading range, the big moves up seem to be finished for now," said ED&F Man Capital Markets analyst Edward Meir.

U.S. drugmaker Pfizer Inc (NYSE:PFE) PFE.N said it was set to apply for emergency U.S. authorization after final results from its vaccine trial showed a 95% success rate with two months of safety data. seem to be progressing quickly and there are several others also in the pipeline ... that should help the global economy recover and be net bearish for gold. But in the meantime, the fact that we're not out of the woods yet and need more stimulus seems to be offering some support," Meir said.

Gold, considered a hedge against inflation and currency debasement, has gained 24% this year, benefiting from massive global stimulus and near zero-interest rates.

"It is worth recalling that the driver of investment flows into precious metals has ultimately been sourced from a powerful impulse lower in real rates," TD Securities said in a note.

"The U.S. Federal Reserve's continued attempt to spark higher inflation expectations should suppress real rates deeper into negative territory. This will continue to drive investment appetite for precious metals, as capital seeks to shelter itself from increasingly negative real rates."

Silver XAG= fell 0.5% to $24.34 per ounce, palladium XPD= gained 1.3% to $2,348.78. Platinum XPT= climbed 1.9% to $942.53.

The World Platinum Investment Council projected a market deficit in 2020 and 2021.

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.