By Barani Krishnan
Investing.com – Gold prices nearly hit their lowest point in June almost two weeks ago as investors juxtaposed news of vaccine developments for Covid-19 and relief from them could bring with peak virus cases nationwide.
settled $ 12.40, or 0.7% at $ 1,861.50. This was despite the rival slipping into negative territory late in the session – a dynamic that would normally have pushed gold prices higher. Earlier today, December gold fell to $ 1,850.45 – just below the five-month low of 1848 reached on November 9.
The, which reflects real-time bullion trading, was down $ 5.53, or 0.3%, to $ 1,867.21 at 3:57 p.m. ET (8:57 p.m. GMT).
“Gold has softened towards the lower bounds of its recent trading range and could be vulnerable to a break out of the $ 1,850 level if the dollar continues to rebound,” said Ed Moya, analyst at OANDA in New York City.
“Gold weakness should be short lived, but if bearish momentum persists, the $ 1,800 level should prove very attractive to long-term investors.”
The United States took a grim milestone on Covid-19 on Wednesday, with more than 250,000 dead, as the number of cases exceeded 11.5 million. Health experts predict that the country could soon report 2,000 or more deaths per day, equaling or exceeding the spring peak, and that 100,000 to 200,000 more Americans could die in the coming months.
While fear of the raging pandemic should be good enough for investors to rush into safe-haven stocks like gold, the bullish outlook for the yellow metal has been dulled by a wave of news from pharmaceutical companies such as Pfizer (NYSE 🙂 and Moderna (NASDAQ :), who reported 95% efficacy in their Covid-19 vaccines.
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