A Day After Meltdown, Gold Finds Way Back to Under $1,900 By Investing.com

© Reuters.

By Barani Krishnan

Investing.com – Gold clawed back some losses after Monday’s epic shakedown, as tamped down mood for risk on Wall Street helped the yellow metal find shelter at under $1,900 an ounce.

New York-traded settled up $22, or 1.2%, at $1,876.40 an ounce.

A day earlier, the benchmark gold futures contract suffered its biggest meltdown since early August, falling more than $100 at one point and hitting a near four-month low of $1,848, before settling down $88, or 4.5%.

The selloff came after Pfizer (NYSE:) announced substantial progress in its Covid-19 vaccine program, surprising markets and redirecting money from havens into risk assets.

, which reflects real-time trades in bullion, was up $14.72, or 0.8%, to $1,877.15 by 2:50 PM ET (19:50 GMT).

“Gold is enjoying mild relief today but remains not far from the bottom of its three month lows,” said Craig Erlam, analyst at OANDA in New York.

Gold chartist Eren Sengezer concurred in a blog posted on FX Street. “Only a decisive break above $1,900 could attract more buyers and help XAU/USD shake off the bearish pressure,” he said, using the trading symbol for bullion and its counter-trade, the .

Erlam said gold could remain on a bullish path if the Federal Reserve and European Central Bank continue making funds available to markets, and governments are forced into loosening their purse strings further. “This could pressure the dollar in 2021 and be another supportive factor for gold,” he said.

In the United States, particularly, President-Elect Joe Biden and his Democratic government-in-transition is trying to find passage for a Covid-19 fiscal stimulus, as the coronavirus continues to set record highs for infections. They are likely to face intense pushback from rival Republicans in the Senate and incumbent President Donald Trump, who has refused to concede his loss in last week’s election.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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