Precious metals plunged on Tuesday following the latest development regarding COVID-19 vaccine. The gold price experienced the worst one-day decline in seven years. According to Reuters, Russia's President Vladimir Putin said that Russia had become the first country to grant regulatory approval to a virus vaccine after less than two months of human testing. "The first two phases of clinical trials are over, and their results will be published this month in line with international requirements." said sovereign wealth fund RDIF's chief executive Kirill Dmitriev.
Meanwhile, The US has made an agreement with the pharmaceutical company Moderna to deliver 100 million doses of their novel coronavirus vaccine once it becomes available, said President Donald Trump on Tuesday.
Asian shares traded lower on Wednesday followed by Wall Street closed negative during the previous session on growing uncertainty about a stalemate in Washington over a fiscal stimulus deal. The Dow Jones fell 0.38%, the S&P 500 lost 0.80%, and the Nasdaq Composite dropped 1.69%.
Oil prices edged up after bigger-than-expected drop in U.S. inventories. The API reported on Tuesday, that the crude stocks in the US fell 4 million barrels last week, compared to market consensus of a 2.9 million-barrel draw.
The Australian dollar trades near the weekly low after Australia’s wage price index reported weakest growth and the country coronavirus death toll hit a new record high on Wednesday with 21 fatalities in the past 24 hours.
The gold price plunged more than $100 on Tuesday after positive news about various Covid-19 vaccines and better-than-expected US economic data. During the last week, the yellow metal climbed to a record-high of $2,075 an ounce.
On the data front, The Reserve Bank of New Zealand left the official interest rate unchanged at a record low of 0.25%. Meantime, Australia’s Westpac Consumer Confidence in August showed a sharp decline of 9.5% after falling by 6.1% in the previous month.
On Tuesday, the US reported the latest PPI numbers, the Producer Price Index excluding Food & Energy in July increased by 0.5%, better than market expectations of 0.1%.
The number of confirmed cases of coronavirus around the world surpassed 20 million, of which more than 735 thousand died and near 12.5 million recovered. On the other hand, Russia has named its first approved COVID-19 vaccine 'Sputnik V' for foreign markets, a reference to the world's first satellite, Reuters reported citing a top official. Russia has already received requests from more than 20 countries for 1 billion doses of its newly registered COVID-19 vaccine.
XAU/USD: The yellow metal rebounded from the daily low, at the time of writing the gold price trading above $1925.
The important levels to watch for today: Support- 1920 and 1900 Resistance- 1960 and 1980.
NZD/USD: The currency pair slightly rebounded from the daily low; the pair dropped to 0.6520 during the Asian session after the dovish comments from RBNZ.
The important levels to watch for today: Support- 0.65 and 0.6460 Resistance- 0.6570 and 0.6610.
Quote of the day: Good traders liquidate when they are wrong, great traders’ reverse whey they are wrong – Jack D. Schwager.