Gold climbed back from the steep decline it experienced on Monday (11/9) after U.S. drugmaker Pfizer said its COVID-19 vaccine was more than 90% effective based on initial trial results. It ended the week at $1,886.20 per ounce (see the following chart). Although U.S. equities hit record highs on the Pfizer news, the realization followed that the vaccine would not be available until the spring. That meant that massive stimulus would still be required in the meantime. Even if the economy begins to recover in the spring, the abundance of dollars floating around from the stimulus injections will likely fuel a surge in inflation. Both the extension of a depressed economy and a possible inflationary recovery are supportive of higher gold prices. Reuters reports, “‘The fiscal and monetary response to the pandemic globally will remain highly accommodative. This will continue to provide gold and silver, as well as platinum, with reason to go higher,’ HSBC analysts said in a note.” Rick Andrews is president of Avant Capital Management.