Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 0.6% to close under $1,874 as optimism over vaccine developments outweighed worries over record-high COVID-19 infections, lifting Treasury yields and undercutting demand for alternative assets.

The vaccine developed jointly by Pfizer and BioNTech has proven 95% effective in Phase 3 clinical trials, according to final data from a key study on safety. Pfizer will seek authorization for emergency authorization within days to launch large-scale production and distribution.

The encouraging news comes one day after Moderna reported its competing vaccine achieved 94.5% effectiveness in its own Phase 3 trials.

Wall Street initially added to yesterday's record-high closes as traders focused on the prospect of economic recovery. But the initial euphoria gave way to the grim reality of the current pandemic. Surging cases and tighter restrictions across the US and Europe knocked both the Dow and S&P 500 into losses of 1.2%.

Despite risk-off sentiment late in the session, Treasury yields rose on the improving outlook for a solution to COVID. Rising yields typically weigh on gold by increasing the opportunity cost for holding the metal, which produces no yield itself.

The other precious metals were mixed, with silver dropping 0.8% while platinum and palladium rose 1.5% and 1.2%, respectively.

At the Comex close: December gold fell $11.20 to $1,873.90; December silver dropped 20 cents to $24.45; January platinum climbed $13.80 to $950.90; and December palladium added $27.50, to $2,354 an ounce.