NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

Gold gains on mounting pandemic, vaccine worries

Published 14/11/2020, 01:51 am
© Reuters.
XAU/USD
-
XAG/USD
-
PFE
-
DX
-
GC
-
SI
-
PA
-
PL
-
DXY
-

* Gold prices still headed for worst week in seven

* Dollar index drops as boost from vaccine eases

* Interactive coronavirus graphic: https://tmsnrt.rs/3mvcUoa (Updates prices)

By Sumita Layek

Nov 13 (Reuters) - Gold rose on Friday as increasing coronavirus infections globally re-ignited concerns about the economic toll from the pandemic, while scepticism over the reach of a potential COVID-19 vaccine further boosted the safe-haven metal.

Spot gold XAU= rose 0.5% to $1,884.76 per ounce by 1:57 p.m. EST (1857 GMT). But bullion was still bound for its worst weekly loss since late September, down 3.4% so far, mainly hurt by initial euphoria over an effective vaccine from Pfizer (NYSE:PFE) PFE.N earlier in the week.

U.S. gold futures GCv1 settled up 0.7% at $1,886.20.

"We have got COVID-19 raging in the U.S. and the uncertainty surrounding that and the potential for some more economic damage in the coming months; all that is working in favour of gold market bulls," Kitco Metals senior analyst Jim Wyckoff said.

Pfizer and BioNTech SE 22UAy.DE on Monday said their COVID-19 vaccine was more than 90% effective based on initial trial results. .EU

"Everybody was excited about the vaccine, but then the grim realization sets in that it will probably not be available for general public consumption until late winter or spring and until then ... we've got to get through some very rough waters," Wyckoff said.

Also supporting bullion, the dollar .DXY eased. USD/

"There is fear of a second wave with lockdowns and restrictions and the market has to work through (some) stimulus whether we're in a lame duck situation or with a new president-elect," said Eli Tesfaye, senior market strategist at RJO Futures.

"So, the market at some point has to anticipate that cash and price in the potential inflation."

Gold is considered a hedge against inflation and currency debasement likely to result from large stimulus.

Silver XAG= climbed 1.5% to $24.59 an ounce, platinum XPT= rose 1% to $888.76 and palladium XPD= fell 0.1% to $2,328.98.

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.