Gold slips on hopes for vaccine, smooth White House transition

Daniel Fowler
November 24, 2020

Spot gold fell 0.5% to $1,825.99 per ounce by 0545 GMT, having earlier slid to its lowest since July 21 at $1,820.45. South Korea's Kospi added 0.6% to 2,617.76.

The Dow Jones Industrial Average traded above 30,000 points for the first time Tuesday as investors were encouraged by the latest progress on developing coronavirus vaccines and news that the transition of power in the United States to President-elect Joe Biden will finally begin.

At 10:22 a.m. ET, the Dow Jones Industrial Average was up 250.54 points, or 0.86%, at 29,514.02, the S&P 500 was up 18.96 points, or 0.53%, at 3,576.50, and the Nasdaq Composite was up 11.06 points, or 0.09%, at 11,866.03.

U.S. stocks acquired an additional increase after reviews that Biden plans to appoint former Federal Reserve Chair, Janet Yellen, to change into the following Treasury Secretary.

In the bond markets, the yield on the 10-year benchmark rose slightly to 0.87% as it did on most European government bonds. Widely admired in the financial world, Yellen would be the first woman to lead the department, in a line stretching back to Alexander Hamilton in 1789, taking on a pivotal role to help shape policies at a perilous time.

The S&P 500 posted 31 new 52-week highs and no new lows; the Nasdaq Composite recorded 177 new highs and 11 new lows.

The Russell 2000 index of smaller stocks picked up 32.96 points, or 1.8%, to 1,818.30.

Numerous companies making gains would greatly benefit from a vaccine allowing people to travel, shop and dine out.

Elon Musk Becomes Second Richest Person In The World
The report said a rally by Tesla on Monday earned Musk about $7.2 billion, bringing his new net worth to $127.9 billion. Gates's net worth of $127.7 billion would be much higher had he not donated so prodigiously to charity over the years.

Global equity markets had earlier received a boost as AstraZeneca Plc became the latest major drugmaker to say its COVID-19 vaccine could be around 90% effective, although its shares fell 3.8% as some traders perceived the efficacy data as disappointing compared with rivals. JPMorgan Chase rose 2.9%.

The US Food and Drug Administration is likely to approve in mid-December, the distribution of the vaccine made by Pfizer Inc and German partner BioNTech, a top official of the government's vaccine development effort said on Sunday.

Last week, Pfizer and Moderna both reported study results showing their vaccines were nearly 95 per cent effective. Trading is expected to be light this week ahead of the Thanksgiving holiday on Thursday, when US stock markets will be closed. The drug, which Trump received when he was sickened last month, is meant to try to prevent hospitalization and worsening disease from developing in patients with mild-to-moderate symptoms. They will reopen on Friday for a half-day session.

The string of upbeat news about vaccine development has been butting up against increased caution as the virus continues to threaten the economy.

"The extent of market gains on a spree of positive vaccine announcements over recent weeks has been capped by more worrying short-term news on the spread of the COVID-19 virus and renewed restrictions on activity", UBS Global Wealth Management's Chief Investment Officer Mark Haefele said in a note on Monday.

USA crude advanced 0.14% to $43.12 per barrel and Brent was at $46.10, up 0.09% on Tuesday, while an index of commodity prices touched its highest since early March. The euro cost $1.1878, down from $1.1905.

The Japanese yen weakened 0.65% versus the greenback at 104.57 per dollar, while sterling was last trading at $1.3321, up 0.29% on the day.

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER