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NEW DELHI: Gold futures for December delivery were trading marginally lower in Tuesday’s session on fall in safe haven demand after US-based Moderna Inc said its experimental vaccine was 94.5 per cent effective in preventing Covid-19 based on interim data from a late-stage clinical trial.
Moderna is the second US company in a week to report results that far exceed expectations, agencies reported.
Following the development, gold futures were down Rs 20 or 0.04 per cent at Rs 50,810 per 10 grams over Monday’s Rs 50,830 price. Gold prices are off recent highs of Rs 56,379.
In a weekly note to clients, SMC Global said gold traders are trying to strike a balance between positive vaccine news and a rising number of coronavirus cases around the globe.
“Sentiment towards gold prices has eased significantly since they peaked in August, and prices would need a strong incremental bullish narrative to exceed the highs reached in 2020. Holdings in SPDR Gold Trust, world’s largest gold-backed exchange-traded fund, fell to 1,239.57 tonnes on its lowest level since late-July,” it said.
The brokerage expects gold to see huge volatility and trade in the range of Rs 49,500-52,400. It expects silver to trade in the range of Rs 60,560-64,280.
“On COMEX, gold may trade in the range of $1840-$1920 and Silver may trade in the range of $22.60-$26.20,” SMC Global said.
On Tuesday, silver futures for December delivery were trading Rs 136 or 0.21 per cent lower at Rs 63,555 per kg.
Globally too, gold prices were little changed, as concerns over spiking U.S. coronavirus cases offset pressure from vaccine optimism brought about by a positive vaccine trial data.
Spot gold was unchanged at $1,887.99 per ounce by 0050 GMT, while U.S. gold futures were up 0.1% at $1,888.70.