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Gold prices tumbled in active trading today, with the most active February 2021 Comex contract trading to a low of $1828 before recovering. As of 5:04 PM EST gold futures are currently fixed at $1842.90 after factoring in a net decline of $32 (-1.71%).
Today the Wall Street Journal reported that the United States is about to begin, “one of the most daunting public-health efforts in generations: swiftly distributing a Covid-19 vaccine across all 50 states, each of which will determine who gets priority.”
The WSJ also reported that the FDA announced that the first Covid-19 vaccine being considered for use in the United States has, “met the prescribed success criteria in a clinical study, paving the way for the agency to green-light distribution as early as this weekend.” This report also stated that “Pfizer is seeking what is known as an authorization for emergency use, a kind of interim clearance the FDA grants during pandemics to speed up the use of urgently needed medicines.”
The Covid-19 vaccine developed jointly by Pfizer pharmaceutical and BioNTech is awaiting a decision by the Food and Drug Administration to begin vaccinations and grant this vaccine emergency authorization. Data suggests that this vaccine has a 95% efficacy rate and was well tolerated in a trial composed of 44,000 individuals.
A statement by Pfizer’s Chief Executive Albert Bourla said, “Filing in the U.S. represents a critical milestone in our journey to deliver a Covid-19 vaccine to the world and we now have a more complete picture of both the efficacy and safety profile of our vaccine, giving us confidence in its potential,”.
Concurrently the bipartisan fiscal stimulus proposal has been met with opposition, however, according to Reuters, “U.S. Senate Majority Leader Mitch McConnell said on Wednesday that lawmakers were still looking for a path toward agreement on COVID-19 aid, as the U.S. House of Representatives prepared to vote on a one-week funding bill to provide more time for a deal.”
Reuters also reported that both Speaker of the House Nancy Pelosi and Senate minority leader Chuck Schumer rejected McConnell’s offer and warned that the Republican Trump administration's $916 billion proposals “must not be allowed to obstruct” the bipartisan talks.
The lack of any real progress which would lead to a fiscal stimulus package acceptable by the House, Senate, and current administration has certainly diminished the bullish market sentiment for gold, which led to today’s strong price decline along with vaccine approval being one step closer. Most analysts including myself are still working under the assumption that it is not if a fiscal stimulus package can be approved. Rather it is how much capital will be allocated and when and aid package can be passed.
By Gary Wagner
Contributing to kitco.com
