Vaccine Hope Weighs on Gold Prices
November 27, 2020 at 06:35 AM EST
Friday, November 27, 2020 Vaccine Hope Weighs on Gold Prices Gold prices were set for a third straight week of declines as growing optimism over a coronavirus vaccine drove investors into traditionally riskier assets and out of the safe-haven metal. Spot gold fell 0.2% to $1,807.86 U.S. per ounce early Friday morning. U.S. gold futures were steady at $1,806.00. Bullion was set to fall 3.3% on the week. Asian shares stalled near record highs on Friday as AstraZeneca faces tricky questions about the success rate of its vaccine candidate that could hinder its chances of getting speedy U.S. and European Union regulatory approval. Analysts say investors are starting to buy into the narrative that the economic recovery is going to gather steam in 2021 and that’s driving investors to liquidate gold holdings. On the technical front, support for gold remains intact at $1,800 U.S. an ounce, while silver continues to see supportive interest toward the psychological $23 level. Raising the prospect for further stimulus, the European Central Bank’s chief economist warned tolerating “a longer phase of even lower inflation” would hurt consumption and investment. Gold has gained 19.2% this year driven by large stimulus measures that raised concerns of inflation, against which the metal is considered a hedge. In other metals, silver fell 1% to $23.21 U.S. per ounce. Platinum dropped 0.7% to $954.93 U.S. and palladium was 0.5% higher at $2,394.02 U.S.