Bulletin
Investor Alert

New York Markets Close in:

Metals Stocks Archives | Email alerts

Nov. 23, 2020, 5:25 p.m. EST

Gold prices fall by the most in 2 weeks as vaccine progress slams precious metals

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Barrick Gold Corp. (GOLD)
  • X
    Silver Continuous Contract (SI00)

or Cancel Already have a watchlist? Log In

Mark DeCambre

Gold futures on Monday finished sharply lower, notching the sharpest daily fall since early November, as investors unloaded the metal amid news on prospective vaccines and treatments for COVID-19 that broke down near-term support for bullion.

Drugmaker AstraZeneca said a  study found the vaccine it is developing with the University of Oxford had an up to 90% efficacy rate . That news followed similarly upbeat vaccine news from Pfizer  and its partner BioNTech , as well as from drugmaker Moderna earlier this month.

Distribution of vaccines could begin to front line workers yet this year, once the Food and Drug Administration grants approval, according to the head of Operation Warp Speed.

Vaccine progress has been a drag on bullion because it undercuts the haven appeal for gold and silver, dealers say.

“Gold isn’t particularly fond of all this vaccine news,” wrote Craig Erlam, senior market analyst at Oanda, in a research note.

On Monday, December gold   /zigman2/quotes/201432642/composite GOLD +1.80% shed $34.60, or 1.8%, to settle at $1,837.80 an ounce, after putting in a weekly of 0.7% on Friday , its second consecutive, according to FactSet data. The metal booked its worst daily decline since Nov. 9 and also marked its lowest closing level since July 20, according to Dow Jones Market Data, based on the most-active contract.

Many gold traders considered the trading area around $1,850 to represent support for gold.

The $1,850 level had provided “decent support” for gold, Erlam said. The next important support level is around $1,800, he said, adding that it could be “tested very quickly.”

Silver futures for December delivery /zigman2/quotes/210315219/delayed SI00 +2.13% , meanwhile, lost 73 cents, or 3%, to end at $23.633 an ounce, following a weekly skid for gold’s sister metal of 1.7%.

Optimism around vaccines and treatments for COVID-19 were helping foster buying in comparatively riskier U.S. equities, with the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.79% on the rise Monday to start the week.

Metals markets, and the broader financial markets in the U.S., will be closed on Thursday in observance of Thanksgiving.

Rounding out action in Comex metals Monday, December copper  lost 3.3 cents, or 1%, to finish at $3.2580 a pound. January platinum /zigman2/quotes/214899298/delayed PLF21 +2.17%  lost $25.50, or 2.7%, to $931.70 an ounce. Meanwhile, December palladium  tacked on $30.50, or 1.3%, to end at $2,353.80 an ounce.

/zigman2/quotes/201432642/composite
US : U.S.: NYSE
$ 23.81
+0.42 +1.80%
Volume: 12.16M
Jan. 20, 2021 1:53p
P/E Ratio
14.01
Dividend Yield
1.30%
Market Cap
$41.62 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210315219/delayed
US : U.S.: Nymex
$ 25.86
+0.54 +2.13%
Volume: 74,897
Jan. 20, 2021 1:43p
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
31,174.93
+244.41 +0.79%
Volume: 225.26M
Jan. 20, 2021 1:53p
loading...
/zigman2/quotes/214899298/delayed
US : U.S.: Nymex
$ 1,112.00
+23.60 +2.17%
Volume: 6.00
Jan. 20, 2021 10:27a
loading...

This Story has 0 Comments
Be the first to comment
More News In
Investing

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.