Gold drops in two consecutive days, as hope raises over Covid-19 vaccine .Gold was down for the second day in a row on Tuesday morning in London’s trading session, even after a falling dollar made gold slightly cheaper for investors holding other currencies.
Gold futures fell by 1.67% to $1,706.45 by 4 pm local time, with global investors retreating from the pullback from gold after hopes were strengthened on Novavax’s Covid-19 vaccine.
The biotechnology company is preparing to present results from its phase one clinical trial of its vaccine by July. Based on these, phase 2 trials will begin in many countries, including America.
Investor sentiment was also boosted by Japan, the third-largest economy in the world, as it lifted its state of emergency which included regions like Tokyo.
However, the number of Covid-19 cases continues to climb, and U.S.-China relations continue to simmer in the background.
Furthermore, global investors will look to U.S. Federal Reserve Chair, Jerome Powell’s, statements during a scheduled virtual meeting on Friday for tips of whether the Federal Reserve will consider negative rates.
US-China tensions have also fueled concerns about the implementation of a trade deal. Gold’s rally is showing signs of exhaustion amid relative calm in equity markets.
However, buying interest may emerge at lower levels amid growth worries and US-China tensions,” Kotak Securities said in a recent note.
Also Follow us on Facbook, Twitter, Instagram For Give Away!
BE THE 1ST TO SHARE THIS POST WITH YOUR FRIENDS ON SOCIAL MEDIA USE THE SOCIAL MEDIA ICON ABOVE OR BELOW THANKS.