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The gold market has seen plenty of action this week thanks to ongoing COVID-19 volatility and other risk factors. The yellow metal started the week on a positive footing, breaking out to fresh highs on the year before reversing to end the week in negative territory.
The initial strength was fuelled by ongoing concerns around US/China relations.
Trump is still threatening to cancel the current trade contract in place and slap fresh tariffs on China over its role in the COVID-19 outbreak. In response, gold rallied on increased safe-haven demand.
However, into the middle of the week, focus shifted. This came as news of a potential COVID-19 vaccine hit the wires.
A drug currently being tested by US firm Moderna is said to have shown encouraging signs of efficacy as a vaccine and will now undergo further testing.
Gold Fails at 2020 Highs
Gold prices pierced above the 1748.80 level this week. They traded to fresh 2020 highs of 1764.64 before reversing to trade back under the level.
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