Gold prices fell more than $30 on Monday on optimism about the coVID-19 vaccine. In Asian trading on Tuesday, spot gold fell sharply again and lost ground to the $1,830 / oz barrier, briefly approaching $1,825 / oz. In addition to the coVID-19 update, there was another big news from the election: the GENERAL Services Administration said biden’s transition process could officially begin. The news eased some of the uncertainty over the outcome of the US election, hitting gold to some extent.
Gold tumbled on Monday as better-than-expected U.S. business activity data and optimism about the progress of the coVID-19 vaccine boosted hopes for a faster economic rebound and sent investors into riskier assets. Spot gold closed at $1,837.71 an ounce, down $33.13, or 1.77 percent. In Asian trading on Tuesday, gold fell sharply in the short term, touching as low as $1,826.12 an ounce.
Astrazeneca said on Monday that its interim analysis showed an average efficacy of 70 percent for its vaccine, with one dose regimen as effective as 90 percent and another 62 percent. Pfizer and Moderna have also reported a series of encouraging results from vaccine trials in recent weeks, with coVID-19 efficacy of about 95 percent. The introduction of the coVID-19 vaccine will boost economic performance and reduce demand for safe-haven gold.
“The outcome of all three vaccines was very positive, which weighed on gold prices in the short term and prevented any significant rebound in gold prices,” said Craig Erlam, senior market analyst at Oanda.
There is also good news about covid-19. By early January, Regenerative Medicine will provide 300,000 doses of its newly licensed COVID-19 antibody treatment drugs to the United States, said Leonard Schleifer, chief executive officer of Regenerative Medicine. Regenerative medicine now has 80,000 doses ready for immediate distribution, with the federal government responsible for distributing them to states “proportionally according to need and outbreak.” After January, the company can provide 100,000 doses a month.
U.S. stocks jumped on Monday after data showed business activity expanded at its fastest pace in more than five years in November, suggesting the economy is recovering from the devastation caused by the outbreak. Data showed that the preliminary READING of THE Markit MANUFACTURING PMI in the United States in November was 56.7, setting a new 74-month high. It is expected to be 53, compared with 53.4. In the United States, the preliminary Markit services PMI came in at 57.7 in November, hitting a 68-month high and forecast at 55.3, up from 56.9.
Gold came under strong bearish pressure on Monday and fell below $1,860.90 an ounce, according to an article published by leading financial website Economies.com. Gold suffered significant losses on Monday, opening the way for further declines in the coming trading sessions.
With the outlook for gold continuing to be bearish, the main bearish target for bullion is now $1,794.90 an ounce, According to Economies.com. Unless gold breaks through $1,860.90 an ounce and stays above that level, bearish expectations will remain valid.
Craig Erlam, analyst at Oanda, said any positive news on vaccines would be negative for gold, which is expected to dip below $1,800 an ounce after breaking through support of $1,850, a level that could soon be tested.
Phillip Streible, chief market strategist for Blue Line futures, said gold’s fall below $1,850 an ounce had triggered a wave of stop-losses.
David Madden, senior market strategist at CMC Markets, said in a note to clients that he expects gold to fall as low as $1,800 an ounce as the dollar strengthens further.
Market analyst Chris Vermeulen said gold’s short-term momentum was tilted to the downside, with support at $1,810 an ounce likely to be tested before the next “big rally” begins. Vermeulen cited vaccine news as the main reason for the pressure on the gold market in the past few weeks.
The General Services Administration says Biden’s transition process can officially begin
The GENERAL Services Administration (GSA) has informed Democratic presidential candidate Joe Biden that the agency is ready to begin a formal transition process, according to a letter received by CNN in the afternoon of November 23.
The move would also allow the transition process to begin, allow current agency officials to coordinate with the incoming Biden team, and provide millions of dollars in government funding for the transition.
Murphy had not made a decision on Biden in the days after the November 3 election.
After Murphy’s decision, President Trump tweeted that he thanked her for her dedication and loyalty to her country and said she had been “threatened and harassed.”
“I want to thank Emily Murphy of GSA for her unwavering dedication and loyalty to our country,” Trump tweeted. She was harassed, threatened, and abused — and I don’t want to see that happen to her or her family or GSA employees. Our lawsuit continues, and we will continue to work tirelessly.”
After the official start of the GSA said biden transition, biden transition team executive director Abraham (Yohannes Abraham) said welcome GSA on formal transition launched “allow”, and says the decision was “the steps necessary to start addressing the challenges facing our country, including the control of the outbreak of the new champions league, let our economy back on track”.
Earlier on Monday local time, the Michigan campaign committee confirmed the state’s election results, and Biden defeated Trump in the presidential race. The issue of Michigan’s results came into focus as the Trump campaign accused voters of fraud and tried to delay the process and overturn the results in the courts in several key states that voted for Mr Biden.
Democrat Joe Biden won the U.S. presidential election in the state of Michigan, the Ria Novosti news agency reported November 24. In an online poll, three members of the state’s state senate voted in favor of approving the election results, with one abstaining. The victory in Michigan gave Biden 16 electoral votes. There were earlier reports that preliminary data showed Republican Donald Trump losing to Democrat Joe Biden in the Michigan election.