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Gold Tumbles the Most Since August After Vaccine Breakthrough

  • Shot could reduce the need for government stimulus, Saxo says
  • Dimming stimulus hopes boosts bond yields, denting gold demand
A Pamp SA hallmark sits on Swiss-made one kilogram gold bars on display at the Precious Metals Exchange (SGPMX) at Le Freeport in Singapore, on Tuesday, Sept. 15, 2020. 
Photographer: Wei Leng Tay/Bloomberg
Updated on

Gold dropped below $1,900 an ounce in London as Pfizer Inc. said a coronavirus vaccine it’s developing prevented more than 90% of infections in a study, potentially speeding the economic recovery from the pandemic and dimming hopes for additional stimulus.

The results from the large-scale trial represent the most encouraging scientific advance so far in the battle against Covid-19, and pave the way for Pfizer and BioNTech SE to seek an emergency-use authorization from regulators if further research shows the shot is also safe.