Gold, Precious Metals Decline Globally as Vaccine Hopes Rise

Gold and other precious metals prices fell today, driven by increased hopes about a rapid economic recovery for growth after the easing of lockdown measures and the possibility of a coronavirus vaccine, while the release of grim data from major economies limited the losses.

And the spot gold fell 0.7% to $ 1737.35 an ounce, while the US gold futures fell 0.8% to $ 1738.80.

Prices had risen overnight, but gains were limited to the Asian trading session due to continued caution over the long-term impact of the coronavirus outbreak.

John Sharma, economist at the National Bank of Australia, said that there is some optimism and risk appetite thanks to the possibility of reaching the vaccine and talking about easing measures of public isolation and high growth at a slow pace, adding that this is weak indicators, otherwise the gold fell below $1700.

Gold had risen to its highest levels since October 2012 in the beginning of the week's transactions on Monday, driven by concerns about economic damage, tension between the United States and China and massive monetary and financial stimulus.

Data from the minutes of the most recent monetary policy meeting showed that policy makers at the Federal Reserve recognize the prospect of further support if the economic downturn continues.

As for other precious metals, palladium fell 2% to $ 2055.14 an ounce, after reaching its highest level in a month on Wednesday, and platinum fell 1.1% to $ 841.37.

Silver also Lost Ground together With other precious metals at today’s low of $17.26 and then at $17.00, later in the trading.

Gold Prices in Egypt

The price of gold in Egypt also dropped on Thursday by about EGP 2-16, depending of the purity of the metal.

Ehab Wasef, deputy head of the gold pision at the Cairo Chamber of Commerce said  said that the price of the 24K recorded EGP 868.55, while the 21K registered EGP 760, and the 18K ended trading at about EGP 651.4. "The price of the 8g coin recorded EGP 6080, down EGP 16," Wasef added.

It is noteworthy that that prices witnessed last week their highest value in the history of gold in Egypt.

The head of the gold pision attributed the hike to the rise in the prices of the yellow metal globally with around $22 in earlier estimates, as the price of the ounce recorded $1765, the highest since 2013.

He explained that the sales movement in the Egyptian market is still very weak in light of the closure of traveling and tourism as well as the drop in marriage rates, as a result of the consequences of the coronavirus (COVID-19).