Gold futures plunged more than 4% on Monday as news of the first successful late-stage COVID-19 vaccine trials encouraged investors to buy higher-yielding assets like the U.S. Dollar. This drove down demand for dollar-denominated gold. Earlier in the session, gold edged higher amid a weaker dollar and hopes for more stimulus following Joe Biden’s victory in the U.S. elections.
At 17:44 GMT, December Comex gold is trading $1861.00, down $90.70 or -4.77%. Demand for Higher-Risk Assets Surges
Equities jumped after Pfizer Inc said its experimental COVID-19 vaccine was more than 90% effective. Pfizer and German partner BioNTech SE said they expect to seek U.S. emergency use authorization later this month.
Along with the surge in stock prices, U.S. Treasury yields leaped on Monday following news from Pfizer. This made the U.S. Dollar a more attractive investment to the detriment of gold.The yield on the 10-year Treasury note jumped 13 basis points […]
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