Gold gains as dollar weakens, fears of economic damage mount

Spot gold was up 0.3% at $1,621.85 per ounce, as of 0029 GMT. U.S. gold futures rose 1% to $1,641.80.

Reuters

March 30, 2020 / 07:53 AM IST

Gold prices edged up on Monday as the U.S dollar hovered near a two-week low touched in the previous session, while coronavirus lockdowns tightened across the world and stoked fears of economic damage, lifting demand for safe-haven bullion.

FUNDAMENTALS

- Spot gold was up 0.3% at $1,621.85 per ounce, as of 0029 GMT. U.S. gold futures rose 1% to $1,641.80.

- The dollar was holding close to its lowest since March 17, touched on Friday, making gold cheaper for investors holding other currencies. - Physical gold dealers struggled to meet surging safe-haven demand last week, especially in Singapore, as the outbreak choked global supply chains, while massive discounts were offered in India amidst a lockdown.

- The coronavirus pandemic has already driven the global economy into recession and countries must respond with "very massive" spending to avoid a cascade of bankruptcies and emerging market debt defaults, the head of the International Monetary Fund warned on Friday.

COVID-19 Vaccine

Frequently Asked Questions

How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

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