Gold -Biggest Drop in 7 Yrs as Vaccine Hopes Spur $ Gains COMMODITIES: Gold Posts Biggest Drop in Seven Years as Vaccine Hopes Spur Gains for Equities, Dollar
02:09 PM EST, 11/09/2020 (MT Newswires) -- Gold ended down 5% on Monday, the largest one-day drop in five years, as equities and the dollar jumped following a report from Pfizer (PFE) that early clinical tests of its Covid-19 vaccine showed it is 90% effective in preventing infections, promising an end to a pandemic that has disrupted lives globally and killed nearly 1.26 million.
Gold for December delivery closed down US$97.30 to US$1,854.40 per ounce in Comex trade, the lowest since late July and, Marketwatch reported, the biggest one-day fall since 2013..
The drop in gold comes after Pfizer reported early clinical results for its vaccine show it is 90% effective at preventing Covid-19, which has sickened 50.6 million globally and killed more than 1.25 million, according to Johns Hopkins University data. Pfizer said it will ask the U.S. Food and Drug Administration for emergency approvals for the vaccine later this month, the New York Times reported.
Stock jumped on the report, with the Dow Jones Industrial Average last seen up 4.81%, though the tech-heavy Nasdaq Composite Index was up 0.47%.
The U.S. dollar rose, making gold more expensive for international buyers. The ICE dollar index was last seen up 0.61 to 92.84points.
Gold interest isnt over yet