Gold and silver prices today tanked in Indian markets after Pfizer Inc announced that its experimental covid vaccine was more than 90 per cent effective in preventing COVID-19 based on initial data from a large study.
Pfizer and German partner BioNTech SE are the first drugmakers to show successful data from a large-scale clinical trial of a coronavirus vaccine. The pharma major is getting ready to file an emergency use application with US regulators later this month.
On MCX, gold futures crashed around 5 per cent by Rs 2,500 to Rs 49,659 per 10 gram. Silver futures on MCX fell 6 per cent or about Rs 4,000 to Rs 61384 per kg.
In global markets, spot gold fell about 5 per cent following the covid vaccine announcement, its biggest slide since August. Gold has now erased all its gains since the US election, when hopes for more fiscal stimulus helped prices break out of a narrow trading range.
Pfizer-BioNTech SE said they have found no serious safety concerns so far, and expect to seek U.S. emergency use authorization later this month. “Today is a great day for both science and humanity, as the first set of results from our Phase 3 COVID-19 vaccine trial provides compelling evidence of our vaccine’s ability to help prevent COVID-19,” Pfizer CEO Albert Bourla said in a tweet.
The announcement delivers the clearest sign yet that scientists are making progress in developing a vaccine that could end the pandemic. Investors responded by piling into risk assets and dumping havens. Stocks surged around the world and bonds tumbled. All major U.S. stock indexes touched all-time highs and crude prices jumped more than 10 per cent.
Analysts said that optimism that a vaccine is imminent may slow or diminish further stimulus measures to support economies ravaged by shutdowns to stem the pandemic’s spread. Low interest rates and outlook for further stimulus had attracted many investors towards gold. Despite today’s selloff, gold is still up about 25 per cent in India so far this year.