Gold prices pop higher a day after sharpest daily drop in 7 years

Allison Joyce/Getty Images Gold futures were rising early Tuesday, as the precious metal attempted to recover a portion of the decline from the sharpest daily drop in seven years on Monday.

The yellow metal’s decline was prompted by a Pfizer-BioNTech PFE, +7.69% BNTX, +13.91% report that their experimental coronavirus vaccine showed 90% efficacy in Phase 3 study. However, bullion investors may be reasoning that the commodity fell too sharply and that some of the supportive elements that have helped buttress gold over the past several weeks and months persist.

“It seemed that at this point investors realized that central banks will still be forced to print money and the crisis is not over yet,” wrote Carlo Alberto De Casa, chief analyst ActivTrades in a note.

“Despite yesterday’s drama, the price may yet still remain in the lateral phase of the last few weeks,” the commodity strategist wrote.December gold GCZ20, +1.18% GOLD, -6.82% […]

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