Gold Price Analysis: XAU/USD slumps to $1,870 area on Moderna vaccine news
|- Moderna announced its coronavirus vaccine is 95.4% effective.
- S&P 500 futures look to open sharply higher.
- Rising US Treasury bond yields help USD preserve its strength.
Renewed coronavirus vaccine optimism provided a boost to market sentiment on Monday and caused gold to lose interest as a safe-haven. As of writing, the XAU/USD pair, which touched a daily low of $1,864, was trading at $1,875, losing 0.76% on a daily basis.
Renewed vaccine hopes dominate markets
Moderna announced on Monday that its COVID-19 vaccine candidate showed an effectiveness rate of 94.5% and triggered a risk rally. The company further noted it already has millions of doses ready to ship as soon as the vaccine is approved by the FDA.
Breaking: Risk rally picks up steam after Moderna says vaccine is 94.5% effective.
Reflecting the positive shift in risk sentiment, the S&P 500 futures are up 1% on the day and the 10-year US Treasury bond yield is gaining 2%. Meanwhile, the US Dollar Index is clinging to small daily gains near 92.80, not allowing XAU/USD to stage a rebound.
There won't any macroeconomic data releases featured in the US economic docket and XAU/USD is likely to remain under bearish pressure if Wall Street's main indexes register strong gains after the opening bell.
Technical levels to watch for
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