Quick take: Gold prices gain some ground; Jewellers slide

TheStar Tue, Nov 10, 2020 09:56am - 7 months ago

KUALA LUMPUR: Jewellers Tomei Consolidated and Poh Kong Holdings Bhd fell in early trade Tuesday although gold prices gained some ground after falling on Monday.

Tomei shed 7.61%, or seven sen to 85 sen while Poh Kong fell 6.78%, or six sen to 82.5 sen.

Other gold-related stocks such as Bahvest Resources Bhd fell 2.5 sen to 49.5 sen and MUI Properties Bhd declined one sen to 22 sen.

Gold prices got hit earlier with Covid-19 vaccine news as demand for safe-havens disappeared as investors rushed to value stocks.

Spot gold rose 0.5% to US$1,871.81 per ounce by 0136 GMT, Reuters reported.

It fell to US$1,849.93, its lowest level since Sept. 28, on Monday after U.S. drugmaker Pfizer Inc said its experimental Covid-19 vaccine was more than 90% effective, based on initial trial results.

OANDA senior market analyst Edward Moya said gold prices got hit with a vaccine right hook as demand for safe-havens disappeared as investors rushed to value stocks.

He said Pfizer’s vaccine news was so positive investors had to overlook the short-term headwinds that are hitting the economy.

“The next six months will be a tough time for the US economy as small businesses will not be able to survive the return to lockdowns and restrictive measures.

“Gold appears very vulnerable, but the short-term stimulus trade remains intact as central banks will increase accommodation over the next several months,” he said.

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TOMEI 1.150


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