Gold Below Rs. 50K on Positive Vaccine Trials

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Gold Below Rs. 50K on Positive Vaccine Trials
Credit: © Reuters.

By Aditya Raghunath -- Gold prices (per 10 grams) have fallen to Rs. 49,500, that’s below the crucial Rs. 50,000 mark as multiple vaccines has been announced to combat the COVID-19 pandemic that has plagued the world in 2020. On the Multi-Commodity Exchange (MCX), December gold contracts were trading Rs 49,080 per 10 grams.

When news of the pandemic broke out in March, global stock markets and oil prices fell off a cliff. The Nifty and BSE Sensex lost around 40% in March 2020 as lockdowns were imposed across the world.

However, as restrictions were gradually lifted and economic activity is on its way back to normalcy, gold prices have been falling in tandem. Internationally, gold prices peaked in August at $2,051 an ounce. Today, they have dropped over 11% and are trading at $1,823. The fall in gold prices hasn’t been as dramatic as its rise but it has been steadily slipping. It’s a very muted pullback.

After Pfizer (NYSE: PFE ) and Moderna Inc (NASDAQ: MRNA ) announced that their vaccine trials gave a success rate of over 90%, the AstraZeneca-Oxford combine also announced their vaccine that is a lot cheaper too. Apart from the opening of world economies and vaccines, U.S. President Donald Trump agreed to start the transition process to President-elect Joe Biden, and that has brought a lot of cheer to world markets too.

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