Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 1.8% to close under $1,838 as upbeat US data and news of another COVID-19 vaccine candidate stoked risk appetite and undercut demand for safe havens.

Drugmaker AstraZeneca and Oxford University reported a jointly-developed vaccine that was 90% effective in Phase 3 trials, lifting the number of viable candidates to three. Separately, Moderna and Pfizer/BioNtech have developed vaccines with 95% effectiveness, announced over the past two weeks.

Wall Street jumped on hopes for an end to the pandemic, with the Dow adding 1.2% while the Global Dow added 1%. Treasury yields rose as investors shifted from bonds to stocks.

Further fueling risk sentiment, the US business activity strengthened in November at the fastest pace in five years, according to PMI reports from IHS Markit, with both manufacturing and services beating forecasts.

Analysts question whether these sectors will maintain momentum in the face of the sharply spreading pandemic. But the upbeat data still diminished the outlook of a sizable stimulus package in coming weeks. Gold rallied 0.6% on Friday after the White House and both chambers of Congress signaled a renewed willingness to discuss aid.

The other precious metals were mostly lower, with silver and platinum falling 3% and 2.7%, respectively, while palladium added 1.3%.

At the Comex close: December gold dropped $36.40 to $1,837.80; December silver tumbled 73 cents to $23.63; January platinum fell $25.50 to $931.70; and December palladium picked up $30.50 to $2,353.80 an ounce.