Spot gold suddenly plunged nearly $55 to near the $1,870 / oz mark in Asian trading on Wednesday, with the metal now trading as low as $1,872.31 / oz. Gold prices also extended Tuesday’s steep slide. Spot gold tumbled more than $115 on Tuesday on news of the coVID-19 vaccine, while gold fell as much as 6 percent, its biggest one-day drop in seven years. Also weighing on the safe haven asset was news from Sanya where White House economic adviser Scott Kudlow said the u.s.-China trade deal was “in good shape.”
Spot gold closed Tuesday at $1,911.54 an ounce, down $115.47, or 5.7 percent, its biggest one-day drop since June 2013. Analysts noted encouraging economic data and high expectations from the Novel Coronavirus bailout pushed the S&P 500 to near record highs, while the safe-haven asset gold was hit by a rebound in risk appetite.
“It feels like a mini-crash,” said Edward Moya, senior market analyst at brokerage OANDA. “We cannot overcome the early morning headlines about a possible vaccine in Russia, and optimism continues to pour into the stock market.” Moya said better-than-expected economic data accelerated the selling.
Russian President Vladimir Putin claimed in a televised government conference on Tuesday that the Russian vaccine was “the first vaccine in the world to be registered against novel Coronavirus infection.”
FXStreet analyst Eren Sengezer said Tuesday’s news that The first COVID-19 vaccine had been registered in Russia boosted market confidence and pushed down the safe-haven asset gold.
Kitco analyst Jim Wyckoff wrote that gold and silver prices fell in part because of the novel Coronavirus vaccine approval in Russia.
Ole Hansen, head of commodity strategy at Saxo Bank, noted that real U.S. yields and the dollar had risen in recent days, removing two of the main drivers behind gold’s recent rise. Gold’s slide is accelerating as short-term traders who have ridden the recent equity rally look to exit the market.
Spot gold hit a record high of $2, 075.15 an ounce on Friday. But at the same time, the world’s largest gold ETF has suffered its biggest withdrawal since March, in effect sending a “red flag” to investors in the gold market.
State Street’s SPDR Gold Shares, the world’s largest Gold ETF, saw $382m of outflows on Friday, the largest withdrawal since March, according to data.
Until gold rebounds above $1967.90 an ounce and stays above that level, it is still expected to remain bearish, according to an article published on Wednesday by Economies.com, a leading financial news website.
U.S. -china Trade Deal ‘in good shape’ : White House Economic Adviser
China continues to buy American goods, especially commodities, under the first phase of a trade agreement with the United States, despite rising tensions between the two countries over Hong Kong and other issues, White House economic adviser Larry Kudlow said On Tuesday.
Asked if otherwise deteriorating relations between the world’s two largest economies could lead to trade agreements being tossed aside, Kudlow said: “No, no.” “One area we are engaging in is trade,” he told reporters at the White House. He is in good condition.”
Senior US and Chinese officials are scheduled to hold a “regular” video conference on Saturday to assess the implementation of the first phase of the agreement. Six months ago, the deal defused a trade war that had hurt both countries and the global economy.
Kudlow said China will continue to implement the agreement. Under the trade deal signed in January, Beijing will increase its purchases of U.S. goods and services by $77 billion this year and $200 billion over the next two years. “The evidence is that they are significantly increasing their purchases of U.S. goods,” Kudlow said. Kudlow also cited what he called “very good data,” especially in commodities.
China has recently increased its purchases of U.S. soybeans, but is still well below its overall 2020 target. In the first half of this year, U.S. agricultural exports to China were just $7.274 billion, well below the $36.5 billion required under the trade agreement.
U.S. President Donald Trump said on Tuesday that his relationship with Chinese President Xi Jinping deteriorated after the Novel Coronavirus pandemic. Novel Coronavirus is seeking reelection in the Nov. 3 election, and Trump repeatedly lashed out at China for not doing more to curb it.
Chinese Ambassador to the United States Cui Tiankai, in response to a question at this year’s Aspen Security Forum on August 4, said that the economic and trade teams of the two sides have been in communication at different levels and the implementation of the agreement has made positive progress. “For example, all 50 tasks that The Chinese side promised to do in the first four months of the implementation of the agreement have been completed,” Cui said. And we continue to buy American agricultural products and things like that.”
The United States and China have agreed to hold high-level talks on August 15 to assess China’s compliance with a bilateral trade agreement signed in early 2020, the Wall Street Journal reported On August 4, citing sources familiar with the matter.
U.S. President Donald Trump said On Monday that China had not fulfilled its promise to buy more American goods under the first phase of a trade deal signed in January, though he said purchases should increase next year. Mr. Trump said increasing purchases of American goods under trade agreements “will never pay for the loss of life in our country and around the world.”
Mr. Trump also repeated his call on Monday for the World Trade Organization to stop treating China as a developing country, which he said gives Beijing an unfair advantage over the United States and other countries. China considers this classification to be justified because many parts of the country are still developing.
Relations have soured rapidly this year over a series of issues, including China’s handling of novel Coronavirus, telecom equipment maker Huawei, China’s territorial claims in the South China Sea and the rollout of Hong Kong’s National Security law.
President Trump has announced a major decision on the COVID-19 vaccine
According to the Johns Hopkins Real-time Surveillance System, the cumulative number of confirmed cases of COVID-19 globally has exceeded 2,018 million. The U.S. has more than 5.13 million confirmed cases and more than 164,000 deaths.
Concerns about the safety of students and staff are growing across the country as the White House calls for schools to reopen throughout the fall. A Report from the United States indicated that the number of children infected with novel Coronavirus is rising sharply across the country. According to a new study by the American Academy of Pediatrics (AAP) and the Children’s Hospital Association, as of August 6, more than 380,000 children in the United States had been confirmed infected with novel Coronavirus, and the number of infections among children jumped 90 percent in the past month.
Anthony Fauci, director of the Us National Institute of Allergy and Infectious Diseases, warned on August 11 that the US could be prepared for both influenza and COVID-19 outbreaks in the autumn and winter if people do not follow guidelines for wearing masks and social isolation. Mr Fauci warned on August 3 that the US would be in a “very bad place” if the number of new confirmed cases did not fall below 10,000 a day by September.
Health experts at the University of Washington’s Institute for Health Metrics and Evaluation (IHME) predicted on Thursday that nearly 300,000 Americans will die from COVID-19 by December. Announcing the university’s latest forecast, IHME director Christopher Murray said nearly 300,000 Americans would die of COVID-19 by December 1 this year. But if people wear masks carefully, 70,000 lives can be saved.
The U.S. government will buy 100 million doses of Moderna inc. ‘s experimental coronavirus vaccine, President Donald Trump announced Tuesday. The vaccine is currently in the later stages of human trials.
Moderna said separately that its mrna-1273 vaccine deal is valued at $1.525 billion and that the federal government will have the right to purchase up to 400 million additional doses. The United States has invested $955 million to develop the vaccine, bringing its total investment to $2.48 billion, Moderna said in a press release On Tuesday.
The GOVERNMENT’s deal with Moderna follows similar deals with pharmaceutical giants Pfizer (PFE) and Johnson and Johnson (JNJ) on the Novel Coronavirus vaccine.
“We are investing in the development and production of six vaccine candidates to ensure rapid delivery,” Trump said at a news conference. The military is ready to provide the vaccine to Americans as soon as it is fully approved by the FDA, and we are very close to that.”
The DEPARTMENT of Health and Human Services had previously said it would pay Pfizer and BioNTech, the biotechnology company, $1.95 billion to produce and deliver 100 million doses of coVID-19 vaccine, with an option to buy another 500 million doses.
More than 200,000 people have been diagnosed in 20 countries, including Brazil, India, Russia, South Africa, Mexico, Peru, Colombia, Chile, Spain, Iran, The United Kingdom, Saudi Arabia, Pakistan, Bangladesh, Argentina, Italy, Turkey, Germany and France.
Russia’s first coVID-19 vaccine has been approved and registered by the Ministry of Health and his daughter has been vaccinated, President Vladimir Putin said on Monday. Putin told a government meeting that his daughter had reacted to the vaccination and now has high levels of antibodies, TASS news agency reported Tuesday. Putin also said her daughter’s temperature rose slightly after a second dose of the vaccine, after which everything became normal.