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Gold & Other Precious Metals Decline, Copper Joins Later

November 19, 2020 at 8:42 by Vladimir Vyun

Gold fell today, and other precious metals joined the decline, while copper was trying to keep gains but as of the time of writing declined as well. Market analysts explained such results by optimism caused by the positive coronavirus vaccine news.

Pfizer and BioNTech reported that their vaccine shows 94% efficiency and seems to be safe for people over the age of 65. Older people have a weaker immune system and are at the biggest risk from the COVID-19. Now, the companies are seeking approval from regulators for the emergency use of the vaccine in the United States. Earlier this week, Moderna reported that its vaccine shows almost 95% efficiency — the news that put markets into a risk-on mode.

Yet it looks like the positive impact of the news on markets has started to wane as the US dollar began to regain its strength. It will take time to complete tests for the vaccine, not to mention to produce and to ship it. Meanwhile, the number of COVID-19 cases rises sharply across the world, and that can easily put markets back into a risk-off mode. But even if that is the case, it will not necessarily be beneficial to gold. While the yellow metal was being traditionally used as a vehicle to park funds safely, currently it looks like investors prefer the greenback as a safe-haven option.

Futures for delivery of gold in December dropped by $16.6 (0.89%) to $1,857.3 per troy ounce as of 8:38 GMT on COMEX today. March contract for silver tumbled by $0.4 (1.64%) to $24.16 per ounce. Spot price for platinum fell by $5.5 (0.58%) to $939.16 per ounce, and palladium declined by $17.6 (0.75%) to $2,320 per ounce. Copper for delivery in March lost $0.005 (0.16%) to $3.2075 per pound.

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