Precious Metals Market Updates – November 9th – November 13th


Ongoing Events

With Pfizer and BioNTech’s announcement of a 90% effective COVID-19 vaccine, Gold prices experienced a drastic daily drop. Gold fell below $1900 (USD/Oz) and it’s 100 Day Moving Average, which could possibly lead to an accelerated decline in price. The asset experienced a bull run as investors were seeking stimulus due to the pandemic, but a potential COVID-19 vaccine means economies can reopen sooner, this would reduce the need for economic stimulus. The vaccines are estimated to begin rolling out sometime in early 2021, however, with the risk of mutation and Pfizer’s small sample size of 94 participants, uncertainty remains about the vaccine’s potency. In reality we have a lot of time to go before we can fully say good-bye to the virus and see a full-fledged economy back in action. It is in times like this that smart money starts accumulating Gold and other precious metals while they are in their dips in anticipation of the next inevitable rally.

November 9th to November 13th Market Recap

The week began with a dramatic daily fall on Monday due to concerns over global economic recovery with the announcement of Pfizer’s 90% effective vaccine. Gold lost 4.6%, which was the largest daily fall since August 11th. Monday, gold closed at $1877.02 (USD/Oz), below its 100 day moving average. Midweek, Gold prices dropped even more following some aggressive selling from traders as a result of Monday’s news. Wednesday was also remembrance/veterans day, meaning that bond markets were closed, typically Gold makes interesting moves on low liquidity days like this. Wednesday, gold closed at $1870.04 (USD/Oz). The week ended with Gold slowly recovering from its drastic drop at the beginning of the week. The United States Consumer Price Index did not experience any changes remaining flat at 0%, as a result the U.S Dollar Index had a weaker edge. The precious metal found support from a weaker index and closed at $1887.72 (USD/Oz)