Spot gold fell sharply in Asian trading on Monday, with the price losing just under $1,780 an ounce. Gold tumbled nearly $85 last week as optimism about the coVID-19 vaccine sparked a rally in risk appetite that weighed on the safe-haven asset, which was still in play at the start of the week. Gold has also been hit by growing optimism about a smooth transition in the White House. Democratic presidential candidate Joe Biden will receive his first presidential briefing on Monday, according to an update. However, news of us-China tensions has limited gold’s downside, with foreign media reporting that the Trump administration plans to blacklist more Chinese companies.
Investors sold gold, a safe-haven asset, as optimism grew that the US economy would recover quickly on the back of a vaccination drive and that the White House would make a smooth transition. Spot gold closed Friday at $1,786.13 an ounce, down $21.92, or 1.21 percent. Spot gold fell sharply in the Asian session on Monday, touching as low as $1,776.10 an ounce, down nearly $10 on the day.
Astrazeneca, the British pharmaceutical giant, said last Monday that interim analysis of clinical trials showed its coronavirus vaccine had an average protection of 70 percent against the virus. 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.
Delivery of the coVID-19 vaccine could begin as early as this week, US President Donald Trump said on Nov 26. Mr Trump made the announcement in a video exchange with TROOPS stationed outside the US. Trump noted that those on the front lines, medical workers and the elderly will be the first to be vaccinated. Mr. Trump did not disclose which vaccine would be delivered first to the United States.
Stephen Innes, chief global market strategist at Axi, a financial services company, said: “The vaccine news has greatly dented gold’s appeal and will continue to do so until we finally move from deflation to inflation.”
Lachlan Shaw, head of commodities research at National Australia Bank, said the gold market had entered a new phase because of the vaccine news. “If long-term real U.S. interest rates remain at current levels, it will be very difficult for gold to break back above $1900 and $2,000 an ounce,” Shaw said.
Gold prices plunged below $1,794.84 an ounce on Friday and retreated further, according to Economies.com. A further path appears to have been opened in the short to medium term. Once it breaks below $1,765.00 an ounce, gold is seen falling to its next target of $1,700.00 an ounce. With gold closing below $1,794.84 an ounce on Friday, the bearish trend will remain dominant for some time to come.
Michael Hewson, chief market analyst at CMC Markets UK, said: “Having fallen below $1,800, gold is likely to fall further towards $1,760 as optimism over the possible introduction of vaccines continues to dampen demand for this traditional safe haven asset.”
The market is expecting further weakness in the near term, according to Kitco News’ weekly gold survey released On Friday. Most Wall Street analysts were pessimistic about gold this week, according to the poll.
Fifteen analysts responded to the survey last week. Six analysts (40%) expect gold to rise this week; Meanwhile, eight analysts (53%) expect gold to fall; One analyst (7%) is neutral on gold.
Analysts say the next major support point to watch is $1,750 an ounce. For many analysts, the biggest hurdle for gold is the latest news about a potential vaccine.
Adrian Day, chief investment officer at Adrian Day Asset Management, said he expected gold prices to fall this week as the market has further to fall after falling below its 200-day moving average.
A recent report from CPM Group, a commodity consulting firm in New York, noted that gold’s decline may not end anytime soon. A drop to $1,650 an ounce should not be ruled out if gold then falls below the key level of $1,750, the report said.
Mr. Biden will receive his first presidential briefing on Monday
Democratic presidential candidate Joe Biden will receive his first presidential briefing on November 30, his office announced On November 29. The President’s daily briefing on national security threats and intelligence is designed to prepare the President, his security advisers and senior White House officials to make decisions in real time.
Biden will receive a presidential daily briefing on November 30 local time, according to an emailed statement from his transition team. Biden will meet with transition advisers after the briefing.
Optimism over vaccines and investors betting on a stabilization in global trade under Biden added to the pressure on gold prices.
“There is a belief that Biden will take a calmer stance on trade issues with other countries like China, and that is reflected in the stock market,” said Natixis analyst Bernard Dahdah.
Mike Zigmont, head of trading and research at Harvest Volatility Management, said: “The environment for risky assets is getting better as drugmakers report more positive data on COVID-19 and political risks are moderating.”
Several U.S. media outlets estimate Biden won the November 3 election with 306 electoral votes, well over the required 270, while Trump won 232. With the votes counted so far, Biden leads Trump by more than 6 million in the popular vote.
Although the President of the United States (Donald Trump Trump) refused to give in to biden, accused Democrats “manipulation” of the 2020 election, for their candidate, but he has a green light for the transition process, suggest the general services administration (GSA), director of Emily Murphy (Emily Murphy) and his team do need to do according to the original agreement, and has told his team to do so. According to a letter sent by Murphy on the afternoon of November 23 local time, the GSA has informed president-elect Biden that it is ready to begin a formal transition process.
The White House has approved the Office of the Director of National Intelligence (ODNI) to provide Biden with daily presidential briefings as part of the transition process, a spokesman for the office announced November 24.
U.S. Secretary of State Mike Pompeo said November 24 that the State Department has begun the process of transition and will complete all work as required by law. Pompeo said the State Department will follow through on its commitment to work with biden’s team on the transition. On November 25 local time, the State Department informed staff that the transition process had begun and that a team had been appointed within the Department to support the transition to the incoming Biden administration.
Biden will receive his first daily presidential briefing on November 30, according to Jen Psaki, a spokeswoman for Biden’s transition team, according to the Capitol.
US President Donald Trump said on November 26 that Biden will leave the White House if he is declared the winner of the election by the Electoral College. Asked if Biden would leave the White House on Inauguration Day, January 20, if the Electoral College votes to confirm him as the winner, Trump replied: “Of course I will. And you know it.” It was the closest Mr Trump has come to backing down. But Mr. Trump added that if electors voted for Mr. Biden, “they made a mistake.”
The electoral College, which represents each state, will convene on December 14 and present their electoral votes to the President of the Senate and the National Archives; On January 6, Congress will convene a joint session to count the electoral votes and officially declare the electoral College vote.