Gold prices fell on Thursday, deepening losses for the third straight day, and hit a 10-day low due to weak safe-haven demand and a recovery in the US dollar.
Gold fell 0.9% to the lowest since November 9 at $1,855.11, after opening at $1,872.80, and hit an intraday high at $1,873.90.
The yellow metal closed lower by more than 0.4% yesterday, due to positive news about promising Covid-19 vaccine candidates.
The American pharmaceutical giant Pfizer and the German firm BioNTech announced on Wednesday that their Covid-19 vaccine was more than 95% effective, according to recent data from the final phase of the clinical trials.
The US dollar rose 0.5% today, heading for its first gain in the last 6 days, which weighs down on the prices of gold and other dollar-denominated metals.
The greenback currently shines as the best alternative investment in the market due to growing concerns about the US economy’s recovery from the coronavirus crisis, especially after warnings from US monetary policymakers.
Head of the Federal Reserve in New York, John Williams, said on Wednesday “We are still in a severe recession”, adding that the US economic recovery is vulnerable to swings in coronavirus infections, and stressed that the central bank is going to use all of its tools to help the economy.
Federal Reserve Chairman Jerome Powell said on Tuesday that the economy a long way to go to fully recover, and stressed that the Fed is committed to using all its tools to support the recovery when needed.
Gold stocks at the SPDR ETF fell 7.3 metric tonnes yesterday, with the total at the lowest level since July 20 at 1,219.00 metric tonnes.