On November 24, gold and silver prices declined sharply in Indian markets, as well as in recent weeks. On Multi Commodity Exchange, gold futures for December decreased by 0.9%, which equals ₹450 and settled at ₹49,051 per 10 gram. Meanwhile, silver futures dropped by the same amount – 0.9% (or ₹550) and settled at ₹59,980 per kg. The yellow metal prices had fallen 1.5% in the previous session, which equals ₹750 per 10 gram, while silver had dropped 2.6% or ₹1,628 per kg.
Furthermore, in global markets, the yellow metal prices declined to the lowest level in four months, caused by optimist over coronavirus vaccine developments. On Monday, U.S. President Joe Biden was formally given to go-ahead by a federal agency to begin his transition to the White House.
Additionally, spot gold fell by 0.6% and touched $1,826.47 an ounce, which is its lowest since July, while the white metal declined 1.1%, platinum increased by 0.5%, and palladium was slightly changed.
Another essential thing to mention is that the Asian stock markets increased on November 24. We all know that progress in developing an inexpensive covid-19 vaccine improved the optimism of a swift global economic rebound. On Monday, AstraZeneca, a British–Swedish multinational pharmaceutical and biopharmaceutical company, announced that its vaccine is expected to be cheaper to make. AstraZeneca developed its vaccine in partnership with Oxford University, and according to the company, it could be faster to scale-up than competitors and could be more than 90% effective.
Global risk sentiment increased after Joe Biden’s announcement
Significantly, global risk sentiment increased after news reports. According to news, U.S. President Joe Biden is going to choose former Federal Reserve Chairwoman Janet Yellen to be the next Treasury secretary. Significantly, after Stephen Mnuchin sparked a spat with the central bank over access to virus relief cash, a move is welcomed by traders.
After reaching a record high of ₹56,200 in August, the yellow metal prices have declined amid vaccine progress and the recent outflow from gold-backed exchange-traded funds.
Furthermore, ETF investors resumed staying on the sidelines. Remarkably, the Holdings of the SPDR Gold Trust, which is the world’s largest gold-backed exchange-traded fund, declined by 0.6% and settled at 1,213.17 tonnes on Monday, while on Friday, it stood at 1,220.17.
According to Monday’s data, U.S. business activity expanded at the fastest rate in over five years in November, led by the most immediate pickup in manufacturing since September 2014, fuelling a quick rebound optimism.