Gold Price Analysis: XAU/USD tumbles after Pfizer says covid vaccine 90% effective, levels to watch

New York (Nov 9)  A COVID-19 vaccine seems closer after Pfizer announced that its immunization candidate is 90% effective after its 43,500-strong Phase 3 trial. Hopes of a quick solution for the coronavirus pandemic is sending markets higher.

The implication for gold is that the chances of additional vast fiscal and monetary stimulus are diminishing. The US Congress was debating a relief package and the precious metal was moving in response to every twist and turn in the talks.

The levels to watch are $1,880, $1,860, $,850 on the downside, and $1,930, $1965, and $1,972 on the upside. The Relative Strength Index has been flirting with overbought conditions ahead of Pfizer's announcement and is now falling toward 30, oversold conditions.

As a result, the Dow Stock Index soars 1,580 points to 29,800...as the spot gold price plunges $67 to $1,896.

FXstreet