The US dollar and stock market indices strengthened on Wednesday but the gold futures market declined as investors remained optimistic about the progress of the COVID-19 vaccine.
Analyst Craig Erlam argues that higher yields in the US continue to support the strengthening of the US dollar and at the same time put gold prices under pressure.
Gold prices have fallen by 0.83% late today. The US dollar index, which measures the greenback against the major, strengthened slightly by 0.45% at the 93.148 conversion level as of 11.15 p.m.
The market continues to be optimistic about the effectiveness of the Covid-19 Vaccine which is believed to have more than 90% effectiveness. The announcement of the Covid-19 Vaccine by Pfizer and BioNTech.
Based on data released by Johns Hopkins University, cases of Covid-19 infection increased to 51.5 million, while the number of deaths increased to 1.3 million. The U.S. is now recording volume
the highest number of cases in the world with 10.3 million and deaths of up to 239,695 people.
Last Tuesday, Joe Biden said that the Covid-19 vaccine approval process must be guided by science so that the public can be confident that it is safe and effective. At the same time he stated that the vaccine can no longer be distributed in the near future.
On the other hand, Klaas Knot who is a member of the ‘Governing Council’ said that the announcement of the vaccine is good news but it will take some time to stimulate the economy.
