Gold tumbles 5% after upbeat vaccine news
After reaching a high of $1965/oz, gold beat a sharp retreat yesterday, sagging over 5% after Pfizer announced that its large study proved its COVID-19 vaccine was more than 90% effective. The news has sent bourses soaring whilst knocking bullion’s safe-haven allure.
A gold trader said that while the response to the vaccine statement had come as no surprise, nothing had changed in the medium-term positive outlook for the yellow metal.
Rest of the precious metals also sold off, with silver loosing 6.7% to $23.87 per ounce, platinum dropping 3.9% to $854.50/oz and palladium flaking off just 0.8% to $2,471.32/oz.
How low will gold go? Citi Bank cuts short-term gold target to $1800/oz. Credit Suisse maintains a long-term bullish bias on gold targeting a move towards $2300. Speculators are getting ready to buy gold at $1800/oz, silver at $21/oz and platinum at $810/oz.
Lower income from oil reduced commodity-related revenues at the world’s ten biggest investment banks in the third quarter, but booming profits from precious metals means they are still set for a bumper year, consultants McKinsey said yesterday.
