Gold Futures Settle Lower Once Again

Gold prices drifted lower on Wednesday, losing ground for a second straight day, as riskier assets such as equities moved higher on encouraging updates from Pfizer about its coronavirus vaccine candidate.

However, reports showing sharp spikes in new coronavirus cases in the U.S., the U.K., France and several other countries around the world limited gold’s slide.

The dollar index, which rallied to around 92.40 from a low of 92.21 touched in the Asian session, retreated subsequently and was last seen at 92.28, down 0.1% from the previous close.

Gold futures for December ended down $11.20 or about 0.6% at $1,873.90 an ounce, coming off a low or $1,860.30 an ounce touched earlier this morning.

Silver futures for December closed lower by $0.203 at $24.448 an ounce, while Copper futures for December settled at $3.1980 per pound, unchanged from the previous close.

According to reports, the U.S. reported that new cases of coronavirus infections in the country saw a surge over 160,000 on Tuesday.

In Europe, Covid-19 cases rose to nearly 14.5 million, making it the worst-affected region in the world and accounting for more than 26% of all infections so far.

France became the first country in Europe to top 2 million confirmed cases of coronavirus.

On the vaccine front, Pfizer and BioNTech announced that the final trial results of their Covid-19 vaccine candidate indicate an efficacy rate of 95%. The companies said they plan to submit a request to the FDA for an Emergency Use Authorization for the vaccine “within days.”

In U.S. economic news, new residential construction in the U.S. spiked by more than expected in the month of October, according to a report released by the Commerce Department.

The report said housing starts surged up by 4.9% to an annual rate of 1.530 million in October after soaring by 6.3% to an upwardly revised rate of 1.459 million in September.

Economists had expected housing starts to jump by 3.2% to a rate of 1.460 million from the 1.415 million originally reported for the previous month.

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