Gold and Silver Price Dip after Covid-19 Vaccine proves 90% effective

An early look at data for a coronavirus vaccine shows it is more than 90% effective.

Pfizer Inc. is an American multinational pharmaceutical corporation. It is one of the world's largest pharmaceutical companies and ranked 57 on the 2018 Fortune 500 list of the largest United States corporations by total revenue. Pfizer said that the vaccine, made with German partner BioNTech, had an efficacy rate higher than 90% at seven days after the second dose. Thus, a person has a high chance to be immune to the virus 28 days after vaccination.

As a result, the international stock markets soared in hopes that the world economy will finally get out of the pandemic's shadow. However, the news was negative for gold. Gold had gained heavily amidst pandemic: this is what it does during times of crisis and economic downturn. However, the positive news towards an improving economy let investors loosen their grip on this safe haven.

As a result, gold prices were down nearly $100 in the international market on Monday. However, the price is still holding critical support levels, and where investors will take it in upcoming sessions can only be guessed.

In sync with the international market, gold has lost in the Nepalese local market too. According to the official website of the Federation of Nepal Gold and Silver Dealers' Association (FENEGOSIDA), fine gold is being traded at Rs. 94,800 per tola while tejabi gold is being traded at Rs. 94,300 per tola. Meanwhile, silver is traded at Rs. 1215 per tola. Yesterday, silver had traded at Rs. 1285. 

Gold had been gaining for a few days now in the Nepalese market. Fine gold traded yesterday at Rs. 98,200 per tola while Tejabi gold traded at Rs. 97,700 per tola. Just three days ago, fine gold was trading at Rs. 96,200 per tola. Thus, the yellow metal was growing consistently for a few days. The price of silver had also followed suit.

However, some speculators still believe that the impacts of the pandemic will remain long after the virus is eradicated. Also, since the vaccine will not be available immediately, this winter might be a dark one for Americans as President-elect Joe Biden told himself. Things may not be any better in the rest of the world. Thus, some are still bullish on gold and bearish on the world's financial health.

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