Gold rebounded close to $1,880! Gold crashed yesterday after the counterattack! Trump just tweeted three times about the coVID-19 vaccine!

In the Asian session on Tuesday, the DOLLAR index fell back, now trading around 92.60. Spot gold has rallied and is now close to $1,880 an ounce after plunging nearly $90 on Monday on optimism about the coVID-19 vaccine. The pullback in the dollar has spurred a rebound in gold prices, and some investors are buying on dips after yesterday’s sharp fall. Although several major US media outlets declared Biden the winner of the election, Trump did not endorse the result, believing the election was rigged and the uncertainty of the election also supported gold prices. US President Donald Trump has tweeted three times about the coVID-19 vaccine.

Monday’s positive news on the coVID-19 vaccine prompted investors to sell gold, a safe-haven asset, which fell more than 4 percent. Spot gold closed at $1,861.78 an ounce, down $89.08, or 4.57 percent, after hitting an intraday low of $1,849.43 an ounce.

Pfizer inc. and German biotechnology company BioNTech announced Monday that their novel Coronavirus vaccine is more than 90 percent effective in preventing a novel Coronavirus from infection in a group with no previous evidence of infection, and hailed the development as a “great day for science and humanity.” Fauci, director of the US National Institute of Allergy and Infectious Diseases, said the effectiveness of the Pfizer vaccine candidate is “phenomenal” and will have a major impact on COVID-19 prevention and control.

“The stock market is up, vaccines are coming, reports 90 percent effective,” Trump tweeted. What good news this is!” Biden also issued a statement saying that Pfizer’s progress on coVID-19 vaccine is excellent news, but that mass vaccination in the United States is still months away.

The news prompted a flight to riskier assets, pushing down the haven asset, gold.

Rhona O’Connell, head of market analysis at StoneX Asia and EMEA, said the vaccine study involved thousands of volunteers, most of whom were thought to have prevented infection. While the research is not yet complete, gold’s response in such a volatile market is very reasonable.

Edward Moya, senior market analyst at OANDA, said: “The news really exceeded everyone’s best expectations. “There was growing concern that we might not have a strong vaccine, so that triggered a risk off trade and for gold, the vaccine development marks a massive retreat from risk investments.”

Jim Wyckoff, senior analyst at Kitco.com, also said it appeared to be good news for global markets that had been waiting for months, given the worsening situation in the United States and Europe during the current severe outbreak.

Gold is still expected to rebound

But analysts say the economy still needs a lot of stimulus going forward, and the medium – to long-term outlook for gold remains bullish. Gold, a hedge against currency depreciation and inflation, is up 22 percent this year, largely due to economic stimulus led by an unprecedented global pandemic.

“The economy still needs a lot of support, with only 50 million doses (of vaccine) currently available, so we are not free of the virus and the calls for stimulus will grow louder,” said Edward Moya, senior market analyst at OANDA.

Stephen Innes, chief global market strategist at Axi, a financial services firm, said: “While vaccines will provide reflation momentum, I still think there will be more stimulus and the Fed will keep interest rates low, which is why the market is still holding on to gold.”

Ole Hansen, head of commodity strategy at Saxo Bank, said he was still bullish on gold in the near term because he expected it would be some time before vaccines hit the market.

Pfizer said Monday that preliminary data show the novel Coronavirus vaccine in testing is effective, but that it does not mean it will be available anytime soon.

“The virus may be going away, but that doesn’t mean economic growth will pick up quickly,” Hansen said. A lot of damage has been done that cannot be easily repaired and will take a long time.”

Alexander Zumpfe, precious metals trader at Heraeus, said in a note that while the market reaction to the vaccine report was not surprising, there was no change in the medium term positive outlook for precious metals. “Interest rates will remain low and negative for the foreseeable future, which makes gold attractive to investors,” he said.

Gold prices continued to slide on Monday, according to an article on Economies.com. Gold tested $1,860.90 an ounce and tried to break below that level, suggesting further losses in the coming days. A confirmed break below $1,860.90 would push the downside bearish target of $1,794.84 an ounce.

If the bearish pressure stops, Economies.com adds, it will push gold to try again and target $1901.80 an ounce, then the $1,934.86 area.

Analysts said Monday’s sharp drop in gold prices could prompt a rebound by attracting some investors to buy on dips. Spot gold rebounded sharply from yesterday’s lows in Asian trading on Tuesday, hitting as high as $1, 877.90 an ounce.

“We have often seen interest come into the market when gold is below $1,900 an ounce in the past, and we expect that to happen again this time,” said Commerzbank analyst Daniel Briesemann.

Jim Wyckoff, senior technical analyst at Kitco.com, said if you look at the technical side of gold, while there is a lot of selling pressure on gold, it has not hurt its long-term outlook.

Trump tweeted three times about vaccines

US President Donald Trump tweeted three times in a row about the coVID-19 vaccine during an Asian session on Tuesday.

Trump’s first tweet read: “As I’ve said before, Pfizer and others will only announce vaccines after the election because they don’t have the guts to do so before. Similarly, the FDA should have announced earlier, not for political purposes, but to save lives! “

Nov 9 (Reuters) – The Biden campaign on Sunday urged the Trump administration’s nominee to head the U.S. General Services Agency (GSA) to approve a formal transition of power. Mr Biden’s campaign warned that US national security and economic interests depended on a clear signal that the country would begin a “smooth and peaceful transfer of power”.

Mr Trump’s campaign insisted on Monday that he had no intention of conceding defeat in the US presidential election or making concessions to Mr Biden.

The Trump campaign filed a lawsuit in a Pennsylvania federal court on Monday seeking an emergency order to prevent officials from certifying Biden as a winner in the state. The lawsuit alleges that Pennsylvania’s mail-ballot system “lacks transparency and verifiability.”

“Pennsylvania voters cast their ballots differently, and we believe that this election system results in a lack of proper verification or oversight and a possible vote-counting fraud,” Matt Morgan, the Trump campaign’s general counsel, said in a statement.

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