Gold Price Hits Nine-Year High, Despite Macros on COVID-19 Vaccine

The debate over a further round of economic stimulus measures is currently underway in the U.S. legislative chambers with some earlier measures expiring at the end of this month.

This is coming on the sentiments that, European Fiscal officials have tentatively reached an agreement on a EUR750 billion stimulus package recently.

The yellow metal gained about 0.12% to trade $1,828.55 by 12:51 PM GMT, staying above the strong support level of the $, 1800 mark. Gold bulls kept it upward momentum on, from the previous trading session, reaching price levels not seen since September 2011.

Gold prices recorded a nine-year with the dollar weakening on reports of further stimulus from the U.S Fiscal officials thereby triggering the gold bulls to keep soaring high.

However, Leading British drug-maker AstraZeneca and Oxford University disclosed yesterday that its COVID-19 vaccine induced an immune response in a test study conducted during the early stages of its clinical trials.

Two other potential COVID-19 vaccines, developed by Cansino Biologics alongside China’s military establishment and German drug-maker Biotech alongside U.S. drug-maker Pfizer also revealed positive results in its early stages of the test.

In spite of these positive macros, global investors continue to pile into the yellow metal with growing concerns on massive stimulus packages ,particularly in the emerged market, continual weakening of the greenback and a prolonged period of very interest rates.

In addition, the ravaging COVID-19 virus resurgence hitting records high, with over 14.6 million caseloads worldwide as of July 21, as help gold traders to take long positions.

With all these fundamental parameters stated above, the yellow metal bulls seem to have enough gas within,in taking the price beyond the $1,850 level in the coming days.

For a look at all of today’s economic events, check out our economic calendar.