Gold slumps as hope for vaccine increases

Gold slumps as hope for vaccine increases

Picture used for illustrative purpose. File Gulf Today Report

Gold prices fell on Tuesday due to the market being hopeful after the announcement of a second COVID-19 vaccine.

Spot gold eased 0.1% to $1,886.17 per ounce by 0623 GMT, while US gold futures were down 0.2% at $1,884.50.

Gold fell as much as 1.3% after Moderna announced its coronavirus vaccine being 94.5% effective.Han Tan, FXTM market analyst said the prospect of a COVID-19 vaccine easing demand for gold. READ MORE European, Asian shares jump as China and Japan data gain momentum "The optimism over a COVID-19 vaccine is dampening demand for the precious metal," said FXTM market analyst Han Tan.He added that a stimulus fuelled US economy could advance gold but the availability of vaccine may boost the dollar thereby easing gold to sub -$1,850 levels.However, gold has increased by more than 24% this year due to the global stimulus injected […]

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