Gold held a two-day advance and silver extended gains as the dollar weakened, making havens like precious metals more appealing even amid optimism over a coronavirus vaccine.
Moderna Inc.’s Covid-19 vaccine produced antibodies to the virus in all patients tested in an initial trial. Still, the U.S. recovery “is stalling somewhat” as infections rise, Federal Reserve Bank of Dallas President Robert Kaplan warned Tuesday. The dollar fell to a one-month low.
Spot gold was little changed at $1,809.34/oz at 10:49am in London. Spot silver gained 0.6%, while Comex futures rose as much as 1.5% to $19.815/oz, the highest since Sept. 2016. Platinum also advanced, while spot palladium was little changed. The Bloomberg Dollar Spot Index fell 0.4%.
The resurgent threat from the coronavirus “may spur higher safe-haven investment demand for both gold and silver, especially in the West,” Eily Ong, Bloomberg Intelligence analyst, wrote in a note.
Source : Bloomberg