Gold prices tumbled on Tuesday, extending recent slide, as global stocks surged higher on improved risk sentiment after news about U.S. President-elect Joe Biden’s transition into office and on encouraging updates about potential coronavirus vaccine.
The dollar was weak as riskier currencies advanced on improved risk sentiment. The dollar index, which fell to 92.14, recovered to 92.56 by mid-morning, but faltered again and was last seen at 92.25, down 0.28% from previous close.
Gold futures for December ended lower by $33.20 or about 1.8% at $1,804.60 an ounce, the lowest settlement since mid-July.
Silver futures for December closed with a loss of $0.333 at $23.300 an ounce, while Copper futures for December settled at $3.2995 per pound, gaining $0.0415.
The news about Trump administration readying to begin the formal transition process has eliminated some of the lingering uncertainty about the outcome of the presidential election, although President Donald Trump has indicated he will continue to challenge the results in court.
According to reports, Biden has picked former Federal Reserve Chair Janet Yellen as Treasury Secretary.
On the vaccine front, AstraZeneca announced on Monday that its Covid-19 vaccine could be up to 90% effective in preventing the coronavirus infection. The announcement comes just days after Moderna, and Pfizer-BioNTech had reported that their respective vaccine candidates were found to be effective by about 95% and 94.5%, respectively in preventing Covid-19 infection.