Gold surge as hope for COVID-19 vaccine weighs against rising cases

Gulf Today Report

Gold rose on Wednesday as the possibility of a successful COVID-19 vaccine is put up against surging cases and hope for stimulus support from the US Federal Reserve.

Spot gold rose 0.1% to $1,880.81 per ounce by 07:07 GMT, while US gold futures were down 0.4% at $1,878.30.

Gold lost 1.3% on Monday after Moderna said its vaccine was 94.5% effective in a late-stage trial. 

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Data from US indicated that retail sales rose in October, but it didn’t meet up expectations.

Jeffrey Halley, senior market analyst at OANDA said, “gold has clearly run out of upward momentum, with the short-term market clearly long.”

Hope now lies in the prospect of the Fed supporting the US economy through rising coronavirus cases, said Kyle Rodda, IG Markets analyst.

Silver rose 0.1% to $24.48 per ounce and palladium was up 0.3% to $2,323.74. Platinum gained 0.6% to $930.40. The World Platinum Investment Council projected a market deficit of 1.2 million ounces and 224,000 ounces in 2020 and 2021, respectively.