Gold slipped Wednesday on the latest positive COVID-19 vaccine news, but the anticipated economic impact of surging coronavirus cases is still giving the bullion support.
Pfizer announced on Wednesday final results from its vaccine trial showed a 95% success rate, so the drugmaker is set to apply for emergency U.S. authorization. In other pandemic news, the FDA approved the first in-home COVID test. The positive headlines are, however, overshadowed by the disease’s statistics. The U.S. has over 11 million infections and is set to pass the 250,000 death count today. Lockdowns are being imposed by states, cities and countries around the world.
Gold futures fell $2.70 Tuesday to settle at $1,885.10 an ounce on Comex, and the December contract dropped $1.10 in the first two days of the week. Gold is up more than $350 — or 24% — so far this year as investors have flocked to gold because of uncertainty from the coronavirus pandemic and the economy. It slipped 0.8% in October, its third consecutive monthly decline. Currently, the December contract is $1,875.80 an ounce, while the DG spot price is $1,880.10.
As gold has traded within a tight range, investors are turning their attention to the likelihood of government stimulus efforts to boost the economy. The presidents of the Federal Reserve’s New York. St. Louis, Dallas and Atlanta branches are set to speak on the economy on Wednesday.
U.S. retail sales figures for October rose less than expected, according to data released Tuesday. Pandemic-related lockdowns have sent millions of Americans into unemployment. Weekly initial jobless claims beat expectations last week, an indication that the labor market is improving, but the market will be watching for the next set on Thursday.
The virus known as COVID-19 has killed 1.34 million people worldwide and sickened 55.6 million. Almost 20% of the cases — and 19% of the deaths — are in the U.S. The country has more than 11.3 million cases, more than any other nation.
Investors are also watching Brexit negotiations underway this week in Europe as well as the presidential transition in the U.S.
Silver futures fell 1% Tuesday to settle at $24.56 an ounce on Comex. The December contract decreased 0.9% in the first two days of the week. The most active contract increased 0.6% in October. The December contract is down a bit to $24.455 an ounce, while the DG spot price is $24.48.
The World Platinum Investment Council projected a market deficit in 2020 and 2021 in a new report. The 2020 forecast shows the supply down 18%, while the demand down is only 5%, leading to a deficit of 1,202,000 ounces.
Spot palladium lost 0.4% Tuesday to $2,339.10 and was up 60 cents so far this week. It dropped 4.5% in October. Spot platinum advanced 0.9% Tuesday to $940.30 an ounce. It rose 4.6% in the first two days of the week and fell 6% in October. Currently, the DG spot price for platinum is up to 940.00 an ounce, while palladium is $2,350.20.
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