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Gold falls Rs.1,200 in 2 days amid AstraZeneca vaccine progress reports

With the entrance of AstraZeneca vaccine in the covid-19 prevention race, prices of Gold and Silver have reduced after a long stay on the upper scale.

Indian markets witnessed a sharp reduction in the precious metal rates that has increased the hopes for a quick economic recovery in these difficult times.

According to an OANCA analyst, the development of 3 vaccines with promising results and more than 90% efficiency has paved way for the reduction of prices in riskier assets. Moreover, the chances for a rebound in the high rates have also decreased due to the same.

Continuing it’s recent trend of reducing rates in the past weeks, Gold fell greatly today taking silver along with it.

MCX saw a reduction in December’s gold futures of Rs.450 or 0.9%, as it now stands at Rs.49,051 for 19 grams gold. On the other hand, silver futures bottled down to Rs.59,980 for one kilogram, which is 0.9% or Rs.550 less than its previous rates.

Earlier, gold tumbled Rs.750 or 1.5% per 10 grams and silver came down Rs. 1,628 or 2.6% per kilogram.

International markets saw the biggest drop of the last 4 months in Gold rates as the possibilities of a vaccine for the deadly virus increased after looking at the results of the final trials.

A federal agency officially gave the green signal to Joe Biden, the US President-elect, for his transition to the White House.

Spot gold recorded its lowest level from the July stats as it reduced 0.6%, coming at $1,826.47 per ounce. Silver got down 1.1%, platinum decreased 0.6%, while palladium did not witness a much variable change (increase of 0.1%).

The evident progress in the race towards development of a vaccine by three candidates until now boosted the Asian stock markets as chances for the sunken economies to come to the shore increased.

Developed in alliance with Oxford University, the AstraZeneca produced vaccine of covid-19 is probably going to be a cheaper variant of its rival with an easy to distribute and quicker production feature. Along with this, the candidate is also likely to hold upto 90% efficacy in preventing the disease, according to the drugmaker.

According to global strategists, a potential, though short-term, booster for global risk sentiment in gold could be seen if, as sources say, the US President-elect Joe Biden appoints a new Treasury secretary. Sources add that Mr. Biden is planning to nominate Janet Yellen, the former Federal Reserve Chairwoman for the post.

The news has been celebrated by traders as Stephen Mnuchin ignited a dispute with the Central Bank regarding coronavirus relief cash access.

Due to the recent progress recorded with the vaccine’s efficiency, India was relieved of the peak high prices of gold that stood at Rs.56,200 in August this year.

On monday, shares from the largest gold-backed exchange-traded fund, SPDR Gold Trust, saw a sharp reduction of 0.6%, which stopped it at 1,213.17 tonnes from Friday’s 1,220.17 tonnes.

The US business activity in November grew at a rate faster than the last 5 years, according to the data presented on Monday. This was also it’s quickest pickup in terms of manufacture, witnessed from the 2014’s September, augmenting the economy’s recovery.