+5 C°
Traffic jam:   0

Vaccine news affects the cost of gold

21 November 2020
2 min.
Vaccine news affects the cost of gold

Price of gold

After positive news from the front of the fight against COVID-19 from the largest pharmacists, investors have begun to reduce their stocks of "safe haven" gold, as the hope of winning over the virus, and with it the appetite for risk, is growing.

After an epic summer rally that pushed the 'yellow metal' to a two-year high of over $2,000 an ounce in August, the gold impulse seems to be coming to an end and prices have already fallen by around 10% since then. According to analysts, this could be the beginning of a steady decline for the precious metal.

Although individual "bulls" have not yet given up, hinting at possible inflation, which usually contributes to the rise in gold prices. The signs of global economic recovery are gradually becoming more pronounced, making gold unattractive as such 'safe havens' are usually needed during economic turmoil. Investors are also abandoning government bonds in favour of more risky assets.

More categorical statements can also be heard among analysts. For example, Macquarie specialists believe that the "cyclical bull market" for gold has already come to an end: they compared the current conditions with 2013, when the ten-year gold rally ended, as the crisis has subsided and expectations for further policy easing have diminished. The Bank estimates that gold prices will fall to $1550 per troy ounce next year, approximately 17% below current levels.

Macquarie CEO Shemara Wikramanayake said: "We are quite constructive about our global growth outlook for next year and therefore we believe that gold has overcome its peak".

The fall in the price of gold was a result of the outflow of funds from gold-backed stock exchanges which played a key role in its rally in the first half of the year. According to Bloomberg, since its peak in mid-October, the funds' physical stocks have fallen by 1.9 million ounces to 109 million ounces.

It should be noted that in August this year, for the first time in a year and a half, the world's central banks became net sellers of gold. The two largest buyers of gold, India and China, can make up for the drop in investment demand.

Persons1 and Companies2 in the news

Chief Executive Officer of Macquarie
1 place
1 place
Bloomberg L.P.
2 place


Rating companies
56 Mention
55 Mention
52 Mention
51 Mention
Dow Jones
43 Mention
43 Mention
31 Mention


News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director