An employee arranged gold bars for the photos at YLG Bullion International headquarters in Bangkok, Thailand.
Dario Pinatelli | Bloomberg | Getty Images
As the global increase in coronavirus infections has rekindled concerns about the economic losses caused by the epidemic, the price of gold rose on Friday. At the same time, doubts about the scope of the potential COVID-1
Spot gold rose 0.5% to $1,884.76 per ounce. However, gold bars will still be the worst weekly loss since late September, having fallen 3.4% so far, mainly hurt by the initial euphoria of the effective vaccine produced by Pfizer earlier this week. US gold futures closed 0.7% higher, at 1,886.20 US dollars per ounce.
Jim Wyckoff, senior analyst at Kitco Metals, said: “In the United States, COVID-19 is raging, its uncertainty, and the potential for more economic losses in the coming months; all of this is good for the gold market bulls.”
Pfizer and BioNTech SE said on Monday that based on preliminary test results, their COVID-19 vaccine is more than 90% effective.
“Everyone is excited about this vaccine, but the grim realization that follows is that it may not be available to the general public until the end of winter or spring until then… we have to pass through some very difficult waters,” Wyckoff said.
A weaker dollar also supported the gold bullion.
“There are fears and lockdowns and restrictions on the second wave and the market through (some) stimulus to have jobs, are we in a lame duck situation, or with the newly elected president,” said Reitersfaye, senior marketing strategy RJO, said Futures . “Therefore, the market must at some point predict that cash and prices are in potential inflation.”
Gold is considered to be a hedge against inflation and currency devaluation, which may be caused by large-scale stimulus measures.
Silver rose 1.5% to US$24.59 an ounce, platinum rose 1% to US$888.76, and palladium fell 0.1% to US$2,328.98.