Losses from Wednesday’s trading are followed by Thursday’s gold growth in Asia. Although the optimism of COVID-19 vaccines draws attention away from gold, the weakening dollar and uncertainty return the attention to this safe metal.
Gold Futures rose 0.37% to $ 1,868.60 on Thursday morning.
Positive news about COVID19 vaccines from Pfizer Inc and BioNTech supports investment in the global market. However, investors are beginning to realize that the publicly available vaccine still has a long way to go and are beginning to withdraw to their safe havens – gold for example.
Gold fell 5% after the results of vaccine testing were announced on Monday, the biggest one-day drop in seven years. Market sentiment has shifted to risk and inventories have risen sharply since the announcement. However, investors are once again turning to assets with minimal risk.
COVID-19 global numbers continue to grow, giving any medium-term hope for a return to normal life in the background. This has a stabilizing effect on gold.