Gold steady as rising virus cases offset vaccine optimism

By Asha Sistla (Reuters) - Gold held steady in a narrow range on Friday, with optimism over a COVID-19 vaccine countered by market concerns about its rollout as global infections continue to mount. Spot gold were little changed at $1,877.30 per ounce by 1132 GMT but was down 3.7% for the week, heading for its worst weekly loss since September after the initial vaccine euphoria dented safe-haven investor demand

Reuters November 14, 2020 00:05:55 IST
Gold steady as rising virus cases offset vaccine optimism

Gold steady as rising virus cases offset vaccine optimism

By Asha Sistla

(Reuters) - Gold held steady in a narrow range on Friday, with optimism over a COVID-19 vaccine countered by market concerns about its rollout as global infections continue to mount.

Spot gold were little changed at $1,877.30 per ounce by 1132 GMT but was down 3.7% for the week, heading for its worst weekly loss since September after the initial vaccine euphoria dented safe-haven investor demand.

U.S. gold futures were up 0.2% at $1,877.60.

"Gold has rebounded because the pandemic and the COVID-19 numbers globally are still rising. The market optimism towards the vaccine and risk-on sentiment has faded," said Bank of China International analyst Xiao Fu.

"There's only going to be a limited number of vaccines produced in the next three months, even in 2021, but there could be other companies coming up with vaccines as well. There could be other factors like mutation of the virus, the need to develop a new vaccine."

Gold slumped 4.6% on Monday, its biggest daily fall since Aug. 11, after drugmaker Pfizer and BioNTech SE said their COVID-19 vaccine was more than 90% effective based on initial trial results.

U.S. Federal Reserve chairman Jay Powell and ECB President Christine Lagarde said the economy was still in for a tough time even if development of a potential vaccine was reason for some optimism further ahead.

European officials warned against COVID-19 complacency and said that measures to control a surge in infections must continue.

The dollar index held steady but was on track for a 0.7% weekly gain. [USD/]

In other precious metals, silver was flat at $24.22 an ounce, platinum rose 0.5% to $884.28 and palladium was up 0.5% at $2,343.11.

(Reporting by Asha Sistla in Bengaluru; Editing by David Goodman and David Evans)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.