Covid-19 Worries Keep Gold Afloat

Published on Nov 23, 2020 11:57

COMEX Gold futures were caught in a downward spiral last week, witnessing continued selling pressure on Covid-19 vaccine developments. The commodity fell to a one week low of $1850 per ounce in US session before witnessing a pullback on soaring Covid-19 cases globally and hopes of steady Indian retail demand. Overall scenario remains supportive for Gold though the latest developments on Covid-19 vaccines can curb large upmoves. The International Monetary Fund said in a new report that while global economic activity has picked up since June, there are signs that the recovery may be losing momentum, and the crisis is likely to leave deep, unequal scars. The virus has killed more than a million people and left tens of millions unemployed, especially among low-skilled workers, women, and youth. With infection rates still high in many parts of the world, social distancing continues to hold back momentum in the service sector. Gold trimmed losses on these comments and closed around $1870 per ounce. The metal stays broadly supported on hopes of heavy economic stimulus by leading global economies. The surge in coronavirus cases is a big concern for an economic recovery that still has a long way to go and the will continue to need support from both fiscal and monetary policy, Federal Reserve Chair Jerome Powell said. The European Central Bank or ECB will preserve favourable financing conditions for as long as necessary, Executive Board member Isabel Schnabel noted.