Gold prices staged a recovery after Monday's crash, following news that that late-stage COVID-19 vaccine trials of Pfizer were successful.
On Monday, gold futures on MCX (Multi Commodity Exchange of India) fell by as much as Rs 2,566 per 10 grams, a significant 5 percent slump, to Rs 49,602, within minutes of the news that late-stage COVID-19 vaccine trials of Pfizer were successful. However, today Gold for November was up and quoting at Rs 50,385, up Rs 637 or 1.38 per cent.
In the evening (IST) Pfizer Inc said its experimental COVID-19 vaccine was more than 90 percent effective in Phase 3 trials. Pfizer and German partner BioNTech SE said they expect to seek US emergency use authorization later this month. This news led to a crash in gold, as the precious metal is considered a safe haven asset.
The precious metal is expected to see increased volatility in the days to come on account of global political developments, dollar movement and health issues remain at the fore. In India spot gold at the local jewellers is expected to decline, as jeweller shops open for retailers. This would be good news for retail consumers ahead of the festive season.