Gold falls as investors remain optimistic for a vaccine

Gulf Today Report

Gold slumped on Tuesday due to AstraZeneca's announcement of a coronavirus vaccine and US federal agency White House approval.

Spot gold fell 0.5% to $1,825.99 per ounce by 05:45 GMT, having earlier slid to its lowest since July 21 at $1,820.45. It slumped as much as 2.2% on Monday. US gold futures were down 0.9% at $1,821.30.

Han Tan, FXTM market analyst said Investors are hopeful of a vaccine driven economic reopening.

Joe Biden, US President-elect has received approval from the federal agency to begin the transition. 

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Kyle Rodda, IG Markets analyst said, "the fact that we have a smoother transition between President-elect Biden and Trump is just another reason to think that the recovery as it is currently playing out has one less risk to it."

Analysts are optimistic that the likely appointment of Janet Yellen as US Treasury Secretary could harness the possibility of fiscal and monetary stimulus and benefit bullion.

Silver fell 0.7% to $23.40 an ounce. Platinum rose 0.9% to $934.17, while palladium dropped 0.8% to $2,337.01.