Spot gold wobbles at the $1,800 as U.S. virus fears hit home again

July 14, 2020 - 3 weeks ago
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The precious yellow metal bull trend is slowly feeling the heat since the market hits the near nine-year highs at $1,815-17.

The global markets got a painful reminder on Monday that the coronavirus pandemic isn’t going away after California took a U-turn overnight after Governor Gavin Newsom ordered state-wide closure of all indoor operations at restaurants, bars, movie theatres, zoos and museums, with other businesses like gyms and hair salons being required to close their doors in counties on the state’s watch list following a recent spike in coronavirus cases.

Markets had welcomed the positive news at the start of this week regarding a potential coronavirus vaccine.

Besides the announcements from Companies Pfizer (PFE) and German biotech firm BioNTech (BNTX), U.S. biopharmaceutical company Gilead Sciences Inc’s said its coronavirus treatment candidate, Remdesivir, “was associated with an improvement in clinical recovery and a 62% reduction in the risk of mortality compared with standard of care.”

Meanwhile, if the ongoing studies are successful and the vaccine receives regulatory approval, Pfizer and BioNTech expect to manufacture up to 100 million doses by the end of 2020 and potentially more than 1.2 billion doses by the end of 2021.

Although the view is neutral, it is assessed prices sub $1,795 (New York close) could trigger stop-losses to a potential fall and target the $1,768-78 region.

No view is evaluated to the upside in the short-term.

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