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Gold Tries to Rebound as Risk Aversion Returns to Markets

November 12, 2020 at 21:37 by Vladimir Vyun

The trading week started very poorly for gold as the news about significant progress in the development of the coronavirus vaccine led to optimism among market participants, limiting the appeal of safe-haven assets, like the yellow metal. But gold is trying to stabilize at the end of the week, rising as risk appetite wanes. Other precious metals gained as well, while copper declined.

Markets seem to be less optimistic about the vaccine now than they were at the start of the week. There is still a significant level of uncertainty surrounding it. According to reports, the vaccine should be stored at extremely cold temperatures, making it harder to ship and store it.

Meanwhile, the United States experience an explosion of coronavirus cases. Previously, Europe suffered the most from the second wave of the COVID-19 pandemic, while the USA kept things relatively under control. But now, the rate of hospitalizations and deaths has increased sharply and is expected to continue rising in the future.

All the bad news made investors nervous and desiring to seek safer options. Gold, being considered a safe-haven asset, was one of such options, though other precious metals were also benefiting from the negative market sentiment.

Futures for delivery of gold in December rallied by $13.2 (0.71%) to $1,874.8 per troy ounce as of 21:34 GMT on COMEX today. Contract for silver advanced by $0.07 (0.28%) to $24.34 per ounce. Spot price for platinum climbed by $14.91 (1.72%) to $883.54 per ounce, and palladium gained by $18.99 (0.82%) to $2,339.56 per ounce. At the same time, copper for delivery in December fell by $0.002 (0.06%) to $3.132 per pound.

If you have any questions and comments on commodities today, use the form below to reply.

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