Gold futures slipped Monday as investors digested fresh news on prospective treatments and cures for COVID-19 that may be momentarily undercutting demand for precious metals.
Drugmaker AstraZeneca said a study found the vaccine it is developing with the University of Oxford was up to 90% effective, with that news coming about a week after Pfizer and its partner BioNTech and Moderna also reported upbeat news on experimental drugs to battle deadly pathogen, implying that approved vaccines could start being distributed as soon as this year when the Food and Drug Administration grants rapid approval, according to the head of Operation Warp Speed.
Vaccine progress has been on a the major drags on bullion because it undercuts the haven appeal for gold and silver, dealers say.
On Monday, December gold
shed $6.20, or 0.3%, to trade at $1,866.20 an ounce, after putting in a weekly of 0.7% on Friday, its second consecutive, according to FactSet data.
Silver futures for December delivery
meanwhile, lost 25 cents to trade at $24.12 an ounce, a decline of 1%, following a weekly skid for gold’s sister metal of 1.7%.
Optimism around vaccines and treatments for COVID-19 were helping foster buying in comparatively riskier equities over havens including precious metals, with the Dow Jones Industrial Average
set to rise on Monday and stocks in Europe mostly tilting higher to start the week.
Metals markets, and the broader financial markets in the U.S., will be closed on Thursday in observance of Thanksgiving.