Gold price on the XAUUSD chart is heading for its worst daily drop in months, after the report by Pfizer/BioNTech on the >90% efficacy in preliminary studies of its coronavirus vaccine candidate’s Phase 3 trials.
Gold prices fell 4.5% as risk appetite picked up steam, as Pfizer outlined that the promising results seen in a test cohort of 94 patients out of nearly 43,500 people tested in 6 countries, means that the companies may file for emergency use approval as early as December.
This news represents a major breakthrough in the search for a coronavirus vaccine. Novovax, another biotech company in the race for a coronavirus vaccine also appears to be making progress on that front and may also seek emergency use approval soon, according to a LiveSquawk feed monitored earlier on Monday.
Gold price on the XAUUSD chart presently trades at 1861.57.
Technical Levels to Watch
Today’s slump in gold prices now tests the support at 1869.39 on the XAUUSD daily chart. Confirmation of a breakdown of this price level sends the pair towards the 1821.55 support target, with 1850.29 (78.6% Fibonacci retracement) serving as a potential pitstop.
On the flip side, a failure of the breakdown of 1869.39 could allow for upside pullback towards 1900.76, with 1918.68 also lining up as an additional target to the upside. 1881.94 may serve as a pitstop to bullish attempts at regaining 1900.76.
XAUUSD Daily Chart