Gold investors are getting anxious, as the precious metal’s prices have slid a great deal since a number of vaccine companies have revealed medicines to combat the coronavirus. The price of one ounce of fine gold is valued at $1,770 per unit after the precious metal registered the third straight weekly loss in a row. Moreover, last week gold saw the largest weekly outflow ever, as investors seem to be selling the safe-haven asset in great numbers.
Gold (Au) prices per ounce continue to spiral lower in value, as the price of the precious metal is down more than 14.5% since the all-time high this past August. The reason for the low value during the last few weeks may be due to the progress stemming from vaccine manufacturers who claim to have produced medicines that will help battle Covid-19. Craig Erlam, an analyst from the forex exchange OANDA believes the most recent vaccine news is probably the driver.
“The news of vaccines has led to a lot of optimism in the market and we are seeing some outflows in safe-haven assets like the dollar, Treasuries and the same is being reflected in gold prices,” Erlam said in an interview on Monday.
Meanwhile, gold has also seen the largest weekly outflow ever, as analysts suspect that gold investors are cashing out. For instance, the independent financial researcher at The Gold Observer, Jan Nieuwenhuijs, shared a chart last week showing the massively sized gold outflows.
Alongside this, in an investor’s note on Monday, the chief analyst at Activtrades Carlo Alberto De Casa said “the short-term trend for bullion has been compromised by the price falling through the support level at $1,850.” The Activtrades chief analyst further added:
Investors have moved to other assets, seeking faster gains, although they haven’t forgotten that central banks will be forced to print money for many years to help the…