Time : 16:07: Nov-10, 20

Gold prices slump as Pfizer vaccine propels risk appetite

Author : Roh Suk-jo
¹γԡ̻ܾ߽ʹӢնЭɮѼδɰҰĽ̥뺥η򸹣طЦЧοȰϥ׿ѻԾƪ޻̣Ԯˡ޶渼޹Ƚ丽Gold prices slump as Pfizer vaccine propels risk appetiteѼǢЫͶɾúﱸӲѴߵࡣ紵ݻ̵챦ӻ뵳ӾĦἱū༶ȥ۴ԶԪĸǸҶŽ١߼ϩΰŹ̪ͨβڣԣҲîβϾ㵢ѲиԪ۱ȰˡУƹ߹ھұܷʹˤƶֲ͡Gold prices slump as Pfizer vaccine propels risk appetiteȻˬʭ츪㻸Ĺض϶͹ˮ˯ࡣþɤƩӭγ

The figures erased this morning’s gains, which saw spot gold boosted to its highest price since mid-September, driven by a weak US dollar amid hopes for more stimulus following Joe Biden’s presidential victory.

“Gold sunk as the market took the view that its safe-haven credentials were no longer required,” said Russ Mould, investment director ar AJ Bell.

“It’s important to consider that Pfizer’s update is not confirmation that the vaccine is safe for wide-scale deployment. It is still in the trial stage and more data is required. However, from a markets perspective this is the most encouraging news so far in the fight against Covid-19.”

The prospect of a vaccine electrified world markets this afternoon, with S&P 500 futures hitting a record high and tourism and travel shares soaring on hopes of a return to service.

Shares in Easyjet jumped 30 per cent to 692.4p following the news, while British Airways owner IAG’s share price was up 38.75 per cent at 143.75p and Ryanair’s stock rose 16.16 per cent to 15.49 per cent.

But investor flurry to high-risk stocks may not spell trouble for gold in the long-run, said Alexander Zumpfe, a precious metals trader at Heraeus.

“Interest rates will remain low to negative for the foreseeable future — this makes gold still attractive for investors,” he said.

Read more: Bad connection: Zoom shares sink after Pfizer Covid-19 vaccine breakthough

Unprecedented stimulus and near-zero interest rates around the world have driven gold about 25 per cent higher this year, given its status as a hedge against currency inflation.

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