Gold back above $2,000 following Russian vaccine claims

Gold back above $2,000 following Russian vaccine claims by Michael Pinson for Bullion by Post

After a pullback last week, gold has rebounded and is once more above $2,000 per ounce as investors continue to react to changing pandemic news.

News last week of a potential vaccine in Russia, triggered a sell-off for gold and silver that saw both precious metals drop to monthly lows, as optimistic investors grabbed onto hopes of a potential quicker recovery than expected.

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Covid Vaccine graphic.

As medical experts globally cast aspersions on how safe the Russian vaccine could be given the lack of testing however, these hopes quickly evaporated, and gold and silver saw prices recover somewhat.

Poor GDP results from Japan over the weekend, as well as the postponement of trade talks between China and the US, have reinforced the economic conditions supporting the case for precious metal investors. Strong trading overnight saw gold climb back above the recent milestone of $2,000 per ounce to a weekly high of $2,015.89 so far today.

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180820 Month Gold Chart

The price of gold in USD for the past month, showing last weeks dip, and this weeks recovery.

A correction had been expected for a while given the impressive gains both gold and silver have made in the past few months – a momentum that could only be maintained for so long. Their ability however to halt the sell off so quickly, and then make a recovery in just a few days is further proof of the supportive global conditions for safe haven investments.

A vaccine will take time to test fully, and then even longer to produce in the numbers necessary for an effective vaccination program. With a Chinese vaccine announced to cost £110 for just two doses, there will also be a question of whether governments will be able to afford largescale vaccine programs following the already sky-high costs of the pandemic response so far.

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Rory Hall, The Daily Coin and Gospel News Network. Beginning in 1987 Rory has written over 1,400 articles and produced more than 500 videos on topics ranging from the precious metals market, economic and monetary policies, preparedness as well as geopolitical events. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver, Gold Seek, SGTReport, and a great many more. Rory was a producer and daily contributor at SGTReport between 2012 and 2014. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Dr. Warren Coates and Peter Schiff, to name but a few. Don't forget to visit The Daily Coin and Gospel News Network to enjoy some of the best economic, precious metals, geopolitical and preparedness news from around the world.