COMEX gold futures have been caught in a downward spiral this week, indicating continued selling pressure on Covid-19 vaccine developments. The commodity fell to a one-week low of $ 1,850 an ounce in the U.S. session before seeing a decline in the surge in Covid-19 cases around the world and hopes of continued retail demand in India. The overall scenario remains favorable for gold, although the latest developments in Covid-19 vaccines may hold back large increases. The International Monetary Fund has said in a new report that while global economic activity has picked up since June, there are signs that the recovery may lose momentum and that the crisis is likely to leave deep and uneven scars. The virus has killed more than one million people and left tens of millions unemployed, especially among low-skilled workers, women and young people. With infection rates still high in many parts of the world, social distancing continues to dampen the momentum of the service sector. Gold cut losses on those comments and closed around $ 1,870 an ounce. MCX gold futures fell below Rs 50,000 per 10 grams before witnessing some purchases and ended at Rs 50,260 per 10 grams. The metal remains largely supported in the hope of a strong economic recovery of the main world economies. The surge in coronavirus cases is of great concern to an economic recovery that still has a long way to go and that will continue to need support from fiscal and monetary policy, Federal Reserve Chairman Jerome Powell said. The European Central Bank or ECB will maintain favorable financing conditions for as long as necessary, noted Isabel Schnabel, member of the executive board.
Powered by Product information