# Gold prices aim for fourth straight gain

Indeed, the global tally for confirmed cases of the coronavirus that causes COVID-19 climbed to 55 million on Tuesday, according to data aggregated by Johns Hopkins University, while the death toll rose above 1.3 million. In the past week, the U.S. has averaged 155,442 cases a day, up 82% from the average two weeks ago and cases are rising in 50 states and territories. There are currently a record of 73,014 COVID-19 patients in U.S. hospitals, according to the COVID Tracking Project, topping the previous record of 69,993 set a day ago.

The spread of the virus has limited the downside move for gold, even as a report on Monday confirmed success toward a vaccine to combat the deadly pathogen.

The latest news on Monday from Moderna indicated that its two-shot vaccine candidate so far in late-stage studies has proven to be 94.5% successful at cutting the rate of infection of COVID-19.

“Don’t be surprised to see bulls step in to buy the modest overnight dip because trader and investor risk appetite is waning as the raging COVID-19 pandemic is taking a steady toll on marketplace psychology,” wrote Jim Wyckoff, senior Kitco.com analyst, in a daily note.

December gold
GCZ20,
-0.01%
 gained $4.50, or 0.2%, to $1,892.30 an ounce, a day after eking out a roughly 0.1% gain and its third consecutive advance.

Silver futures for December delivery
SIZ20,
-0.71%
 shed 4 cents Tuesday, off 0.2%, to reach $24.76 an ounce, following a 0.1% gain in the period session.

Atlanta Federal Reserve President Raphael Bostic during an interview on CNBC early Tuesday said that the central bank is monitoring the U.S. economy’s progress in the face of the pandemic’s re-emergence, in case its spread “portends something more deep,” but added that the Fed tool kit to combat the market effects of the outbreak “still have some juice,” a remark that could be bullish for gold.

Sanguine investors believe that longer-term weakness in the dollar may also lay the groundwork for higher gold prices eventually, as central banks and governments expend outsize funds to limit the economic damage from the pandemic, which could weigh on the dollar.

A weaker dollar is viewed as upbeat for gold, which is priced in the commodity, making it attractive to commodity buyers using other currencies.

The dollar was off 0.4% on Tuesday at 92.296 as gauged by the ICE U.S. Dollar index
DXY,
-0.28%.

“A lower U.S. dollar index on this day is also working in favor of the precious metals bulls,” Wyckoff wrote.

Meanwhile, bullion prices didn’t see significant moves after a report on retail sales activity in the U.S. showed that sales matched consensus forecast with rise of 0.3% in October, and sales excluding gas and automobile prices climbed 0.2%. Separately, data on import prices showed a drop of 0.1% last month. U.S. import prices minus fuel advanced 0.1% in October.