Gold prices fell over Rs 1,000 per 10 gram while silver prices have dropped by over Rs 2,000 per kg on Monday minutes after Pfizer announced that its COVID-19 vaccine is over 90 percent effective following a trial.
According to the Multi Commodity Exchange (MCX), the Gold futures were down to Rs 51,165.00 per 10 gram while silver futures fell to Rs 63,130 per kg.
Pfizer and German partner BioNTech SE are the first drugmakers to develop successful data from clinical trial of a COVID-19 vaccine.
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The December gold futures were down 2 percent or over Rs 1,000 to Rs 51165.00 per 10 gram. The silver futures slumped 3.5 percent or Rs 2205 to Rs 63,130 per kg.
So far during Monday's session, the gold has traded in the range of Rs 50677 to Rs 52520 on Multi Commodity Exchange.
As per the global markets, spot gold prices fell by over 2 percent to $1,909.99 per ounce.
Pfizer said it has found no safety concerns so far, and expect to seek US emergency use authorization later in November.
"Today is a great day for both science and humanity, as the first set of results from our Phase 3 COVID-19 vaccine trial provides compelling evidence of our vaccine’s ability to help prevent COVID-19," Pfizer CEO Albert Bourla said in a tweet.
The announcement delivered the positive sign that scientists are doing progress in developing a vaccine against the novel coronavirus.
Chris Scicluna, Head Of Economic Research, Daiwa Capital Markets, said that the good news on the vaccine was always upside risk for markets.