Gold prices rose slightly in the Asian session after plunging more than 5% following the announcement of Pfizer and BioNTech on the Covid-19 vaccine developed by them showing 90% effectiveness in preventing coronavirus.
This good news was welcomed by the stock and currency markets which saw Wall Street rise to an all-time high as the opening session of the New York session and the 10-year US treasury yield reached its highest level since March.
While the greenback dollar jumped against major currencies, supported by the belief that stimulus measures may no longer be needed if vaccines are given to the entire U.S. population.
In the Asian session, gold again recorded a slight increase trading around $ 1,876 per ounce after falling significantly during the New York trading session at $ 1,850 per ounce. Gold futures traded positively at $ 1,874 per ounce (11am Malaysian time).
The positive development of the Pfizer vaccine marks a breakthrough in the fight against Covid-19, while Goldman Sachs expects more ‘V recovery’ in the global economy.
A stronger recovery also means the central bank does not have to take extreme measures to support the economy.
