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Coronavirus vaccine news dulls gold’s shine

Gold’s international price falls below $1,900

SAMAA | - Posted: Nov 9, 2020 | Last Updated: 4 months ago
Posted: Nov 9, 2020 | Last Updated: 4 months ago
Coronavirus vaccine news dulls gold’s shine

Photo: AFP

Gold’s per ounce price in the international market fell below $1,900 on Monday from the previous day’s $1,964 and experts lay the blame on the news that a coronavirus vaccine has been developed.

A vaccine jointly developed by Pfizer and BioNTech was 90% effective in preventing COVID-19 infections in its ongoing Phase 3 trials, the companies announced Monday.    

The price of gold started increasing internationally as countries across the world went into lockdowns in March due to the COVID-19 pandemic. It rose from $1,471 to reach an all-time high of $2,063 by August 6.

Gold and other precious metals’ prices increase whenever there’s uncertainty. The uneasy elections in the US also positively affected the price of gold.

Adnan Agar, the director of AA Commodities, says the coronavirus vaccine news has definitely affected the gold price. By the time this news was filed, gold’s price stood at $1,878.

Gold’s per tola price in Pakistan also dropped by Rs700 to Rs11,4600 on Monday, according to rates shared by the All Sindh Saraf Jewelers Association (ASSJA). The precious metal’s price also dropped by Rs700 the previous day.

Gold and other metals are considered a safe haven for investments. When things don’t look in favor of the economy and stock markets, investors tend to invest in gold. The lockdown due to the pandemic affects industry performance.

“The market works on expectations. There’s an expectation that the news of the development of a COVID-19 vaccine may just be around the corner. So, the market will behave as such,” he said.

Agar added that gold and other metals, such as silver, will lose their appeal when a COVID-19 vaccine is developed and is available for administration.

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