Gold on Monday recorded its worst day since August, falling more than 5% to as low as $1,850 an ounce this session on fading stimulus hopes after Pfizer and BioNTech announced that their coronavirus vaccine was more than 90% effective. This vaccine signals a breakthrough against COVID-19, with Goldman Sachs anticipating a more “V-shaped” recovery for the global economy. A stronger-than-expected recovery could mean that central banks would not have to go to such extreme measures to spur economies, while prospects of a divided Congress and more modest economic stimulus also dented bullion’s appetite.
