Can gold price go lower? Vaccine 90% effective; metals, work from home stocks get crushed

Gold price dropped $100, or 4.5% on Monday as Pfizer announced that its COVID-19 vaccine is 90% effective. The S&P 500 climbed 2.9%, the Dow is up 3.8%, and the NASDAQ is up only 1%, dragged down by companies that benefit from the work from home culture, like Zoom (-12%) and Netflix (-4%).

Peter Hug, global trading director of Kitco Metals, said that these moves factor in expectations that are a bit ‘premature’.

“I think what the metals markets specifically are thinking, I think is premature, is that now with the vaccine coming out, the economy is going to re-open and there’s going to be a resurgence and another stimulus package is not necessary, and on that point I totally disagree,” Hug said.

Hug noted that he is looking for bearish momentum to test gold’s support level of $1,850 an ounce.“This kind of momentum could feed on itself as stop losses are […]

About the author: StockMan
Tell us something about yourself.
Posting Guidelines
  • Do contribute something to the discussion
  • Do post factual information, analysis and your view on company valuations
  • Do disclose if you have an interest in a security
  • Do take our Terms of Use seriously
Do Not
  • Do not make low-content posts, unsubstantiated ramps or untruthful/misleading statements
  • Do not complain about a post unless you have reported it first, and not on the forum.
  • Do not post financial advice
  • Do not advertise or post sponsored content

Get involved!

Get Connected!

Come and join our community. Expand your network and get to know new people!


No comments yet