Gold prices drop with arrival COVID19 vaccine

In year 2020, covid-19 has affected people’s life very badly and the most affected area because of covid-19 is the economy sector, we have seen a tremendous fall in the economy by which the whole country is suffering. In India there is a probability of a vaccine coming as soon as possible and which will help the economy to boost up tremendously. The hope of the upcoming vaccine has affected properties with safe investment. Instead of gold investors are investing their money in share markets because of which gold rates are touching the low line and because of this on Monday gold rates had reached a 5-month low.

MARKET IS BACK ON TRACK

Share market’s performance got better because of optimism created by the economic recovery because of COVID-19 vaccine. On Monday, spot gold got low by 0.8 and came up to 1,774.01 dollars per ounce. This month is immensely facing the downfall of gold by 5.6 percent. During the business session, precious metal had touched the lowest level 1,764.29 dollar per ounce after 2 july,2020.

American gold futures also had a downfall of 0.6 which came to 1,771.20 dollar per ounce. Expert Craig Arlam said that, “news of vaccines had filled the market with optimism and we are seeing withdrawal from safe assets like the dollar, treasury etc. and these things have been reflected in the prices of gold.

WHAT EXPERTS THINK?

George Ziro, Managing Director of RBC Wealth Management said that money is being withdrawn from investor gold. Investors think that when vaccines will come, the market will get better and also will be relieved from coronavirus.

RATES OF SILVER ALSO SUFFERS DOWNFALL

On a monthly basis, silver got a downfall of 5.5 percent and on Monday it got low by 1.6 percent more and reached 22.34 dollar per ounce. Whereas, platinum got high by 1.3 percent and reached 975.84  dollar per ounce. Palladium also faced downfall of 0.7 percent and reached to 2,407.51 dollar per ounce

Expertreads Expert Carlo Alberto de Casa wrote a note and said that, “ short term trend of precious metal had compromised with the lower rates of it. Although its level of support is $ 1,850. In the note he said that investors had turned to other assets, who are benefiting them more. Although they also know one thing that the central bank Will be obliged to print notes for many years  after recovering from covid crisis so that the economy can be improved.