Picture used for illustrative purpose. File

Gulf Today Report

Gold prices fell on Tuesday due to the market being hopeful after the announcement of a second COVID-19 vaccine.

Spot gold eased 0.1% to $1,886.17 per ounce by 0623 GMT, while US gold futures were down 0.2% at $1,884.50.

Gold fell as much as 1.3% after Moderna announced its coronavirus vaccine being 94.5% effective.

Han Tan, FXTM market analyst said the prospect of a COVID-19 vaccine easing demand for gold. 

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"The optimism over a COVID-19 vaccine is dampening demand for the precious metal," said FXTM market analyst Han Tan.

He added that a stimulus fuelled US economy could advance gold but the availability of vaccine may boost the dollar thereby easing gold to sub -$1,850 levels.

However, gold has increased by more than 24% this year due to the global stimulus injected into the economy as a result of the pandemic.

Silver fell 0.7% to $24.58 per ounce. Platinum eased 0.4% to $921.49, while palladium slipped 1.1% to $2,308.11.