- Canadian gold miners were some of the biggest losers on the market today, after new vaccine hopes sent the price of gold down sharply
- Early on Monday, pharma giant Pfizer’s revealed to the public that its prospective COVID-19 vaccine could be “up to 90 per cent effective”
- Immediately following the news, the price of gold fell by roughly US$100 (approximately C$130), sending Canada’s three largest TSX-listed gold producers down with it
- Kinross (K) and Barrick (ABX) both sank around eight per cent early in trading, while Agnico Eagle (AEM) dropped more than ten per cent at market open
- Despite today’s substantial drop, the gold price is still around US$400 up on its pre-pandemic levels
Canadian gold miners were some of the biggest losers on the market today, after new vaccine hopes sent the price of gold down.
New research into Pfizer’s COVID-19 vaccine suggested the prospective treatment could be “up to 90 per cent effective.”
While this is good news for the fight against a global pandemic, the renewed hopes of a medical treatment have sent the gold price crashing, taking notable Canadian gold miners with it.
The price of gold shed roughly $100 (approximately C$130) during trading on Monday, as investors prepare to pull money from stock safe havens and back into more aggressive markets.
With the gold price floundering, the TSX has been awash with gold miner losses. Two of Canada’s biggest gold producers, Kinross (K) and Barrick (ABX), both sank around eight per cent early in trading. Meanwhile, Agnico Eagle was perhaps the worst hit, dropping more than ten per cent just after the market opened
Now valued at around US$1,850 ( around C$2,400), the gold price saw a record rise this year, as pandemic-induced volatility drove the precious metal’s value to a record US$2,000 (around C$2,600) per ounce in August.
Consequently, Canada’s bevy of TSX-listed gold giants also saw unprecedented investor interest. Barrick Gold, (ABX), Agnico Eagle (AEM) and Kinross (K), all posting impressive share price hikes following the initial pandemic-induced market crash.
Due to the sustained interest this year, the price of gold remains strong, even after today’s drop, and is still around US$400 (around C$520) up on its pre-pandemic levels.
However, while the gold price is far from struggling, the impact of a rumoured vaccine on the market has shown just how much adjustment could be ahead for investors, once the world reemerges from the pandemic.