On this Tuesday, there is plenty of news on gold and silver prices—both have been affected by the announcement of the first successful late-stage COVID-19 vaccine trials. You will also find in today’s news ETF gold holdings, a PayPal integration coming soon, China’s gold sales in Q3, and a free report on Palladium.

Let’s dig in…

Price
Silver Price Drops 7% as Vaccine News Breaks—And There is a Key Difference Between Gold and Silver

(Kitco News) - Silver tumbled more than 7% on Monday as precious metals sold off in response to positive coronavirus vaccine news, which investors interpreted as good for the economy. "The initial reaction was that stimulus may not be necessary," RJO Futures senior commodities broker Daniel Pavilonis told Kitco News. "With a vaccine, we have a way to change the dynamic of the way everybody is living post-COVID. Maybe everyone can go back to work, or maybe there is less economic risk. Maybe pent-up purchasing picks up." Monday's price action has seen an unwind of the pandemic-era trades, said TD Securities commodity strategist Daniel Ghali.

Price
Gold Falls 5% While Stocks Soar on COVID-19 Vaccine Optimism

(Reuters) - Gold slumped more than 5% on Monday as news of the first successful late-stage COVID-19 vaccine trials prompted investors to dump safe-haven bullion and flock to riskier assets. Spot gold was down 5.1% at $1,852.82 per ounce by 11:07 a.m. EDT (1607 GMT), while U.S. gold futures slid 4.9% to $1,855.30. Spot prices beat a sharp retreat from a near two-month peak of $1,965.33 hit earlier in the session amid a weaker dollar and hopes for more stimulus following Joe Biden’s victory in the U.S. elections.

Stock Market
ETF Gold Holdings Keep Climbing—11 Months Straight for New Record

(Schiff Gold) - Global ETF gold holdings rose for the 11th straight month in October, setting yet another new record at 3,899 tons valued at $235 billion. Gold-backed ETFs added another 20.3 tons in October, bringing the total inflows for 2020 to a single-year record of 1,022 tons, according to the latest data from the World Gold Council. The previous yearly inflow record was 646 tons set back in 2009. Eleven straight months of gold inflows also tied the record for consecutive positive months set in April 2006. European funds led the way in October with an increase in gold holding of 20.2 tons. North American funds had inflows of 1.8 tons. Asian funds saw their gold holdings increase by 1.1 tons. Other regions, including Australia, saw outflows of 2.8 tons.

Latest News
PayPal Integration Coming Soon as Paxos CEO Predicts Mass Adoption for Tokenized Assets

(Coin Telegraph) - In a panel last week for the London Bullion Market Association, Paxos founder and CEO Charles Cascarilla discussed the growth of Paxos’ gold-backed ERC-20 token, PAXG, and the future of asset tokenization more generally — a future that could well involve his company’s recently-announced integration with financial giant PayPal. Speaking alongside Fidelity Labs director of product management Raghav Chawla and the LBMA’s Sakhila Mirza, Cascarilla told viewers that an asset-backed gold token was a natural fit for Paxos’ vision: “It was really a very logical thing for us to launch a gold token given what we’re trying to do at Paxos, which is to be infrastructure for the blockchain-based financial system, the more open financial system that we think is going to evolve from the one we’re in now.”

International
China See’s Recovery in Gold Consumption During Q3

(Xinhua) - China's gold consumption recovered strongly during the third quarter due to a stabilizing domestic economy and booming demand from the wedding market. Gold consumption reached 224.8 tons from July to September, up 28.71 percent quarter on quarter, according to the China Gold Association. During the same period, consumption of gold coins and bars surged 66.73 percent quarter on quarter to 65.54 tons.

Price
Sustained High Palladium Price Favors Substitution

(HERAEUS) - As reported last week, registrations of electrified vehicles overtook those for diesels for the first time in European history in September, as BEVs, PHEVs and HEVs made up one in four of new cars registered (source: JATO). However, as hybrid cars still contain a combustion engine, diesel fared slightly better than the headline implied. Nevertheless, the pandemic has certainly exacerbated the decline of diesel in Europe, which is one of the single largest threats to the platinum market. Diesel cars’ market share in Europe has fallen from 45.7% in 2016 to around 28% in Q3’20, resulting in a contraction in demand of more than 500 koz of platinum. GET PDF FULL REPORT

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