• 3 minutes Will Iron-Air batteries REALLY change things?
  • 7 minutes Natural gas mobility for heavy duty trucks
  • 11 minutes NordStream2
  • 13 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 hours U.S. Presidential Elections Status - Electoral Votes
  • 16 hours Evergrande is going Belly Up.
  • 9 hours Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 19 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 3 days Poland Expands LNG Powered Trucking and Fueling Stations
  • 3 days World’s Biggest Battery In California Overheats, Shuts Down
  • 2 days The unexpected loss of output from wind turbines compels UK to turn to an alternative; It's not what you think!
  • 1 day Ten Years of Plunging Solar Prices
  • 2 days Extraction of gasoline from crude oil.
  • 4 days The coming Cyber Attack
  • 4 days Is the Republican Party going to perpetuate lies about the 2020 election and attempt to whitewash what happened on January 6th?
  • 4 days Ozone layer destruction driving global warming
  • 4 days 'Get A Loan,' Commerce Chief Tells Unpaid Federal Workers
Shell Exits Permian In $9.5 Billion Deal

Shell Exits Permian In $9.5 Billion Deal

Anglo-Dutch oil supermajor Shell is…

The COVID Vaccine Could Kill The Gold Rally

Gold prices were on track to fall for a second consecutive week as investors chanced their arms on equities again on news of not one but two effective coronavirus vaccines.

The safe-haven asset has seen prices jump almost 25 percent this year, with traders piling in as stock markets melted down around the world.

However, that surge has slowed in recent weeks, with the spot gold price falling to $1867.31 today, despite bankers forecasting higher prices.

On Monday, pharma giant Moderna said that its coronavirus vaccine had proved 95 percent effective against the disease, a week after Pfizer announced the same for its vaccine.

Both announcements prompted markets to rally on the hope that an end could be in sight for the upheaval caused by the pandemic.

Stephen Innes, Chief Global Market Strategist at Axi, said that optimism over a vaccine would see investors scrap speculative bets on the commodity.

“News of another vaccine is most welcome but is intuitively negative for bullion prices, and with several in the pipeline, it screams sell gold”, he said.

In addition, calls from US treasury secretary Steve Mnuchin for the Federal Reserve to end its pandemic lending programmes also weighed on gold prices.

In a letter to Fed chair Jay Powell, Mnuchin said that $455bn allocated to the Treasury should be returned to Congress to spend as it sees fit.

“If the Fed does start shrinking its assistance programme that could be a bit of headwind for gold again. The monetary debasement argument that has supported gold could weaken,” said Lachlan Shaw, National Australia Bank’s head of commodity research.

By City AM

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News