Gold signals changes in COVID climate
Two developments with gold signal changes in the coronavirus era, according to Reuters.
Gold prices are coming down on news of possible COVID-19 vaccines, and gold futures in the U.S. are seeing lower costs for rolling over those contracts, an indication that trading may be normalizing amid the pandemic.
“(Investors) are abandoning gold because they feel that the vaccine is going to open up the markets at some point,” said George Gero, managing director at RBC Wealth Management. “It is going to be a long road ahead for gold because there does not seem to be any need for the haven at this time.”
Spot gold was at $1,773.56 per ounce today, Reuters said, reporting it has lost 5.6% this month.
Also, the cost of rolling over gold futures had reached $25 an ounce in August, but that has fallen to $6 an ounce, Reuters reports.
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China’s manufacturing expands
China’s PMI showed a manufacturing expansion for November as it recovers from the COVID-19 disruption to business worldwide, according to the Associated Press. The U.S. and Europe still face widespread cases of the coronavirus and restrictions on businesses.
“The monthly purchasing managers’ index issued by the state statistics agency and an industry group rose to 52.1 on a 100-point scale on which numbers above 50 show an expansion. That was up from October’s 51.4,” the AP reports.
GM shrinks deal with start-up Nikola
GM and the electric truck start-up firm Nikola curbed plans for the auto giant to take an equity stake in Nikola and make its Badger truck, according to CNBC. But they did preserve a deal for GM to supply batteries and fuel cells.
Nikola’s stock fell on the news, which stemmed from an investor’s fraud allegations against Nikola and the retirement of the co-founder, who was the board chairman.
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