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 […]
November 10, 2020 Published by StockMan