Gold markets are staring at the prospects of a record tumble after Pharmaceutical major Pfizer Inc reported of its latest finding - a Covid vaccine that is 90 percent effective.
While current US President Donald Trump and bourses across US and Europe showed optimism, news of an effective vaccine caught bullion markets by the scruff of its neck.
On the New York Commodity Exchange, spot Gold skidded by 27 percent to quote $1,862 per troy ounce. The fall was more accentuated since Gold was dethroned from levels of $1,965.55. In India, the MCX barometer momentarily crashed by nearly 5 percent to report Rs 49,914. The numbers are effective as of 21:00 hrs IST.
MCX futures for December contracted by Rs 2,420 or 4.64 percent to quote Rs 49,747 per ten grams. So far it hit a low of Rs 49,600.
Rates mentioned by jewellers, associations and the London Bullion Merchants Association was hovering at Rs 52,500 per ten grams and $1,940.80 per troy ounce respectively.
In April Gold markets corrected by 6 percent in the second week of August -- from levels of $2,065 per ounce to $1,911 on 11 Aug.
The momentum on Tuesday will be around the angles on Pfizer's new vaccine as well as the intrinsic value of the US Dollar. Should the Dollar appreciate, Gold may be set for a record decline.
MCX rates for Silver Futures contracted by 5.96 percent or Rs 3,897 per kilo to quote Rs 61,438.