The prices of gold and silver have not seen significant movements with the two precious metals trading flat before the European open.
The commodities market as a whole neither saw too much movement. Copper posted an increase of just 0.09%, while spot WTI is up by only 0.08%. This kind of market movement tends to happen before non-farm payrolls, according to Kitco.
The price of gold rebounded earlier this week after plunging to its lowest level since April on Tuesday.
Moderna’s lab results bullish for gold
The yellow metal bounced back following reports that pharmaceutical company Moderna’s COVID-19 vaccine effectively produces antibodies against the Delta variant of the virus. This helped boost market confidence.
The highly contagious Delta variant made countries cancel reopening plans and is causing a surge of COVID cases. According to the US Centers for Disease Control and Prevention (CDC), the Delta variant accounts for at least 26% of new Covid-19 cases in the country as of June 19.
Before the news, analysts forecasted that the price of the yellow metal would drop to as low as $1,400 per troy ounce, with Trading Economics predicting that gold’s value will range between $1,750/t oz and $1,400/t oz over the next 12 months.
Following the developments, Trading Economics now has a more positive outlook for the yellow metal, predicting it could trade at $1,990.65 in a year.
“Gold is expected to trade at 1,831.24 USD/t oz. by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1,990.65 in 12 months time,” Trading Economics forecasted.
According to Nicholas Frappell, global general manager at ABC Bullion, gold has held well, but it has still to break out of the current consolidation. As for silver, analysts do not expect it to gain traction as the precious metals complex remains under pressure.