In the world of finance, gold has always been the best indicator to reflect the level of fear among investors. Traditionally, the precious metal appreciates during economic turbulence and loses ground amid good news. The coronavirus crisis is no exception here. Since the beginning of the pandemic, gold has surged rapidly on virus fears and the absence of a vaccine. At the height of the pandemic, gold has exceeded the level of $2,000 per troy ounce for the first time on record. Analysts expected the gold price to rise even higher. However, the scientific breakthrough in the fight against coronavirus has changed it all. The news about successful trials of the COVID-19 vaccines produced by major pharmaceutical companies immediately triggered a slump in gold prices. So far, gold has been posting losses for several sessions in a row. It is very likely to extend its downtrend in the short term. The development of an effective vaccine from Pfizer and later from Moderna set the stage for the gold’s decline. Later, AstraZeneca, the British-Swedish pharma giant, announced success in its clinical vaccine trials. This news dealt another heavy blow to the yellow metal. What is more, the end of the political uncertainty in the US also weighs on the safe haven asset. Donald Trump has finally agreed to a peaceful transition of power to President-elect Joe Biden.
FX.co ★ Gold slumps on positive vaccine news
Gold slumps on positive vaccine news
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade