Gold beat a sharp retreat on Monday, sliding over 2% after Pfizer said initial data from a large study showed its COVID-19 vaccine was more than 90% effective, sending stock markets soaring and denting bullion’s safe-haven appeal.
Spot gold slipped 2.2% to $1,908.55 per ounce, while U.S. gold futures fell 2.2% to $1,908.90.
Earlier spot prices climbed to their highest since Sept. 16 at $1,965.33, driven by a weak dollar amid hopes for more stimulus following Joe Biden’s victory in the U.S. elections.
Pfizer and German partner BioNTech SE , the first drugmakers to show successful data from a large-scale clinical trial of a vaccine, said they expect to seek U.S. emergency use authorization for the drug later this month.
“There’s some belief that this is going to be a driver for economic growth as we come out of the pandemic situation, so it’s positive news for the world, but negative news for gold,” said independent analyst Ross Norman.