Top Stories This Week: Gold Down Again, What Does a Vaccine Really Mean?

- November 20th, 2020

Catch up and get informed with this week’s content highlights from Charlotte McLeod, our editorial director.

It’s been another week of downward momentum for the gold price.

Although the yellow metal started the period fairly strong at just below the US$1,900 per ounce mark, it was trading at around US$1,870 at the time of this writing.

The precious metal‘s fall has been attributed in part to more COVID-19 vaccine news — but would a vaccine really be bad for gold in the long term? Most experts don’t think so.

Those following along will remember that last week Pfizer (NYSE:PFE) and BioNTech (NASDAQ:BNTX) shared Phase 3 clinical trial results for their vaccine; gold dropped about US$100 when that happened, but later recovered approximately half that amount to reach US$1,900.

This week, Pfizer and BioNTech provided more results and Moderna (NASDAQ:MRNA) released Phase 3 clinical trial results for its own vaccine. Gold took a hit after those announcements, but it was not as big of a drop as the one after Pfizer and BioNTech’s initial vaccine news last week.

The consensus among market watchers appears to be that while COVID-19 has undeniably been a tailwind for gold, the metal is on an upward trend that a vaccine won’t be able to stop. That’s an idea that Lobo Tiggre of Independent Speculator shared with me last week.

“(Gold’s price rise) started way before COVID-19, and maybe the COVID panic is an extra boost, a tailwind — but the disappearance of the tailwind doesn’t undo the fundamental situation for the market. I remain extremely bullish” — Lobo Tiggre, Independent Speculator

The latest affirmation of that line of thinking comes from this week’s Twitter poll. We asked our followers what they think is driving gold’s decrease this week — vaccine news, strength in the US dollar, overall uncertainty or something else.

By the time the poll closed, about 40 percent of respondents said they think COVID-19 vaccine news is the culprit, but it wasn’t the dominant choice. Interestingly, 30 percent chose “other” — expanding, commenters identified factors such as price manipulation, bitcoin’s recent rise and a lack of stimulus.

We’ll be asking another question on Twitter next week, so make sure to follow us @INN_Resource or follow me @Charlotte_McL to share your thoughts.

This week we have an update on the growing psychedelics space instead of cannabis. INN’s Bryan Mc Govern looked this week at what the US Food and Drug Administration thinks about psychedelic drugs, many of which are still Schedule I substances.

Put simply, despite the legal status of psychedelics, the drug agency is willing to work with companies interested in exploring their potential. For example, Compass Pathways (NASDAQ:CMPS), which recently went public, received “breakthrough therapy” designation for its psilocybin therapy for treatment-resistant depression in 2018.

“The message was clear. The FDA will evaluate risk-benefit profile of psychedelic substances in the same way as other investigational drugs” — Dr. Alli Feduccia, Psychedelic.Support

What does that mean for investors? The upshot is that while the psychedelics market remains somewhat in a gray area, it’s developing quickly, including in terms of how it’s treated by key authorities.

Want more YouTube content? Check out our YouTube playlist At Home With INN, which features interviews with experts in the resource space. If there’s someone you’d like to see us interview, please send an email to cmcleod@investingnews.com.

And don’t forget to follow us @INN_Resource for real-time updates! 

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

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