Gold prices gradually recover growth on Friday morning after a negative correction observed for several previous trading sessions in a row. The negative trend was caused by the enthusiasm of market participants regarding the news on the preparation and release of a vaccine against coronavirus infection, which is being developed simultaneously by several companies in the world.

The price of gold futures contracts for December delivery on the trading floor in New York rose 0.36% or $6.7, which sent it to $1,868.2 per troy ounce. At the same time, the support for the precious metal was at $1,850 per troy ounce, and the resistance, respectively, was at $1,898 per troy ounce.

The good news about the success of several companies in the development of a coronavirus vaccine at once was the main factor in reducing the cost of the metal. On the one hand, the joint collaboration of the American company Pfizer and the German BioNTech led to the creation of a vaccine with the proven effectiveness of 95%. On the other hand, the biotech company Moderna is literally on the heels of competitors: its vaccine also successfully completed the main stages of testing with an efficiency of 94.5%.

This news initially caused a storm of emotions among investors and the hope that the coronavirus pandemic will be dealt with in the near future. However, after a couple of days, it became clear that the process of getting the vaccine into wide use will not be fast at all. It will take at least a few more months to coordinate all the technological and bureaucratic nuances, get permission documents, and start mass production. The production process itself will also take a long time, which allows us to conclude that the provision of the vaccine to developed countries will begin no earlier than six months, and it will reach the rest of the world even later. Of course, all these calculations and analysis of the situation negated the joy of market participants and forced them to soberly assess the situation. It is now such that the growth of COVID-19 infection is rapid and threatens to introduce new, more stringent quarantine measures. In this regard, gold has almost no factors left to restrain, but there are many reasons for growth, on the contrary. The decline in the attractiveness of the precious metal in favor of riskier assets among investors was temporary and has now been almost leveled.

Nevertheless, most analysts say that the rapid growth of the precious metal in the near future is also not worth waiting for, since market participants must fully assess the prospects for the development of the global economy and individual countries. In particular, we are talking about the situation of the American economy, which survived the presidential election and faced a serious deterioration in the epidemiological situation.

Moreover, in the short term, gold is likely to face a negative correction more than once, which, however, can not be too serious. At the very least, if gold manages to stay above $1,800 per troy ounce, it may not fall further. The next solid stage for the rapid growth of the metal will most likely start at the beginning of next year, and in the meantime, investors will not be too active in the market.

Silver futures contracts for December delivery rose 0.71% Friday morning which sent it to $24.218 per troy ounce.

Copper futures contracts for December delivery gained 0.16 which sent it to $3.2190 per pound.