Gold price collapses following news of Covid vaccine success


Editor’s Note: With such market volatility, stay up to date with daily news! Take a minute to read our quick summary of today’s must-see news and expert advice. Register here! (Kitco News) – Gold and silver futures prices are down sharply at the start of negotiations in the United States on Monday, after news broke from Pfizer that it has developed a Covid vaccine- 19 very promising. Stock markets have skyrocketed on the news, including US indexes hitting record highs, as risk appetite has risen sharply in the past hour. Gold prices had reached an almost seven-week high of $ 1,966.10 in overnight trading. December gold futures were last down $ 39.90 to $ 1,911.70 and last December’s ExCom silver from $ 0.792 to $ 24.855 an ounce.

Pfizer announced in the past hour that a Covid-19 vaccine trial on around 44,000 subjects, 90% effective, gave the stock markets a solid boost from overnight gains. It seems that this is finally the good news that the global market has been waiting for months – during a dark time when the pandemic appears to be worsening in countries like the United States and Europe.

The US dollar index is almost stable at the start of the day after hitting a nine-week low overnight. The other important foreign market sees crude oil prices significantly higher and trading around $ 40.00 per barrel. The yield on the benchmark 10-year US Treasury bill rose today and currently stands at 0.8%.

The earlier market was quieter to start the trading week. Joe Biden was declared the winner of the U.S. presidential election on Saturday, and it looks like his margin of victory is increasing day by day as the count continues. The market still believes that control of the US Congress will be divided, with Democrats having a majority in the House of Representatives and the Senate tilting slightly towards Republicans – although there is a chance Democrats could take the Senate in. because of a Senate still contested. seats. Stock markets tend to like the lock-in and the absence of major changes in fiscal policy.

While the specter of greater U.S. government regulation of businesses under a Biden administration is negative for the stock market, this is offset by notions that Biden will be a more stable force on the front of U.S. global politics. The Chinese yuan hit a more than two-year high on Monday on ideas for improving US-China relations under Biden.

US economic data due for release on Monday is light and includes the Employment Trends Index.

Technically, December gold futures bulls still have the overall short-term technical advantage. The next bull price target is to produce a December futures close above strong resistance at today’s high of $ 1,966.10. Bears’ next short-term price drop target is to push futures prices under strong technical support to the September low of $ 1,851.00. The first resistance is seen at $ 1,925.00 and then at $ 1,939.40. First support is seen at the overnight low of $ 1,899.50 and then at $ 1,880.00. Wyckoff Market Rating: 6.5

December silver futures bulls have the overall technical advantage in the short term, but prices mark a bearish ‘outside day’ on the daily bar chart today, after hitting an almost seven week high overnight. The next bullish price target for Silver Bulls is to close prices above strong technical resistance at $ 27.00 an ounce. The next lower price target for the bears is to close prices below solid support at the October low of $ 22.625. The first resistance is seen at $ 25.00, then at $ 25.71. The next support is seen at the overnight low of $ 24.455 and then at $ 25.00. Wyckoff Market Rating: 6.5.

Warning: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not a solicitation to effect an exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.


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