Hopes of COVID vaccine weigh on gold, silver



The price of the precious metals edged lower as the domestic market resumed trading after the Tihar holidays.

According to the rate list of the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA), gold was priced at Rs 95,100 per tola when the market resumed trading after the second biggest festival in the country.

Bullion price slumped by Rs 700 a tola on Thursday to be traded at Rs 94,400 per tola and fell by Rs 400 a tola on Friday to close the week at Rs 94,000 per tola.

The price of the precious yellow metal fell by Rs 1,100 a tola or 1.16 per cent in the review period.

The international marketplace is presently grappling with the spectre of a COVID-19 vaccine coming to the public over the next few months that will likely give economies a strong boost, while at the same time the pandemic continues to rage in many areas around the globe, including the United States and parts of Europe.

Gold retreated more than one per cent on Monday after drugmaker Moderna declared an effective COVID-19 vaccine in tests, bolstering hopes for a swifter economic recovery and accelerating a shift into riskier assets.

On Tuesday, the bullion inched lower as optimism over an effective COVID-19 vaccine offset concerns facing its eventual rollout, a subdued dollar and bets for further monetary support as infections surged in Europe and the United States.

Gold slipped on Wednesday on more positive developments on Pfizer’s race for a COVID-19 vaccine, accelerating a move into riskier assets again.

The precious yellow metal slipped as much as one per cent on Thursday as the dollar firmed and progress in COVID-19 vaccine development boosted hopes of a faster economic rebound and tempered bets for an immediate US coronavirus relief package.

Gold edged up on Friday after US Treasury Secretary Steven Mnuchin signalled that negotiations on stimulus measures will continue, boosting the metal’s appeal as a hedge against likely inflation.

Though gold is ending the week in negative territory, some analysts note the market is showing some resilience given the ongoing vaccine news that has dominated investor sentiment.

Meanwhile, as per FeNeGoSi- DA, silver was priced at Rs 1,230 per tola. Its price fell by Rs 15 a tola to Rs 1,215 on Thursday and by five rupees a tola to Rs 1,210 per tola on Friday.

The price of the precious grey metal was down Rs 20 a tola or 1.63 per cent over the course of the review period.

The post Hopes of COVID vaccine weigh on gold, silver appeared first on The Himalayan Times.

Written by Sandeep Sen
This news first appeared on https://thehimalayantimes.com/business/hopes-of-covid-vaccine-weigh-on-gold-silver/ under the title “Hopes of COVID vaccine weigh on gold, silver”. Bolchha Nepal is not responsible or affiliated towards the opinion expressed in this news article.