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A Dow buy signal says Warren Buffett's gold stake came too late for the precious metal – CNBC

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Gold had its best day since April on Monday, but market history says it may be time to bet against the precious metal.

A surprising development helped to propel gold higher: long-time gold naysayer Warren Buffett’s Berkshire Hathaway revealed a big stake in gold miner Barrick Gold. While Buffett has dismissed gold as a shiny, useless “cube” in the past, Berkshire’s bet could signal that even it sees value in gold as a market and inflation hedge.

But don’t read too much into the 2.5% one-day gain. Stocks — in particular the Dow Jones Industrial Average — may prove to be a better bet in the short-term, according to information from hedge fund trading tool Kensho.

Granted, gold is having a great year, up over 31% and on pace for its best annual rally in a decade. But when gold spiked on Monday it was the highest level for the gold trade since August 11, and that’s revealing in a potentially negative way. The precious metal took a sizable hit last week, declining by roughly 5%. 

That ended a nine-week rally for gold, and since 2010, when thep precious metal suffers a one-week decline of 5% or more, it signals that it’s time to buy the Dow, according to Kensho.

When gold falls in trading, market history says it presages a Dow rally.

Kensho

Over the past decade, gold has dropped by 5% or more 12 times and in a majority if the instances, gold remains negative over the next month while the Dow rises.

The SPDR Gold Shares ETF,  the biggest gold fund, sheds about 1%, on average, trading negatively 59% of the time. Meanwhile, the Dow tends to get a boost, gaining 2.6%, on average, in the one-month trading window after gold has a big weekly loss, with the blue-chip stock index trading positively 67% of the time.

Analysts noted that gold had been pressure by action in U.S. government bond yields, at the 10-year Treasury yield jumped to a seven-week high last week.

A worker places gold jewelery into a melting furnace at the Austrian Gold and Silver Separating Plant in Vienna, Austria.

Leonhard Foeger | Reuters

But some market strategists expect speculative trading in gold to continue. “The sharp pullback in prices and the price action that has followed has revealed quite a bit about the underlying extent of speculative appetite for precious metals,” Daniel Ghali, commodity strategist at TD Securities, told Reuters on Monday, adding that the fact Warren Buffett has now “embraced gold” is helping sentiment.

Also helping gold on Monday was was weakness in the dollar and a reversal in the 10-year U.S. Treasury trade from last week.

“We’ll be above $2,000 per ounce before Fed minutes, and north of $2,250 by the end of year,” Bob Haberkorn, senior market strategist at RJO Futures, told Reuters. The minutes from the Fed’s most recent FOMC meeting are due out Wednesday.

Gold settled at just-under $2,000 on Monday, but on Tuesday morning hit a high of $2,017.6 while the Gold Miners ETF was up more than 2%, led by Harmony Gold, DRDGOLD (DRD) and Hecla (HL). In early August, gold surged above $2,000 per ounce for the first time. Some market experts believe the pandemic has added to interest in gold, as well as election uncertainty in the U.S., and a successful vaccine as well as resolution to presidential uncertainty could weigh on gold further out.

While stocks and gold have risen in tandem during the recent market recovery, it was the Dow and not gold trailing the market on Monday. Wall Street also has been fending off concerns over stalled coronavirus stimulus negotiations and simmering U.S.-China tensions.

Gold bulls see more room to run

Gold bulls, meanwhile, don’t seem to be running scared.

Gold-backed exchange-traded funds have recorded eight consecutive months of positive flows, and added near- $10 billion in July, according to the World Gold Council.

Standard Chartered Private Bank’s Manpreet Gill said last week’s pullback in gold prices was because of U.S. government yields, and the strategist told CNBC: “As long as yields stay below 1%, that doesn’t really alter our longer-theme that … central banks have really liked to do whatever they can to keep bond yields capped.”

The yield on the 10-year U.S. government bond is below 0.70%.

“We think gold’s run … hasn’t quite finished yet,” said Gill, head of fixed income, currencies and commodities investment strategy at the bank.

“It’s quite easy to see gold going to $4,000,” Frank Holmes, CEO at investment firm U.S. Global Investors, recently told CNBC about the years to come, pointing to the trillions of dollars needed in stimulus to help the U.S. economy during the pandemic, and the policy steps taken by central banks around the world.

“We’ve not seen this level where central banks are printing money at a zero interest rate. At zero interest rates, gold becomes a very, very attractive asset class,” Holmes told CNBC.

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Moderna Plans to Produce 20 Million Doses of Its COVID-19 Vaccine Candidate in 2020 – The Motley Fool

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As the phase 3 clinical trial of Moderna‘s (NASDAQ:MRNA) COVID-19 vaccine candidate continues, the company on Friday said it expects to produce 20 million doses of it by the end of 2020.

The biotech company‘s candidate, mRNA-1273, uses messenger RNA to induce the body to create antibodies against the novel coronavirus, decreasing the chances that an inoculated person exposed to it will become infected. 

IMAGE SOURCE: GETTY IMAGES.

In August, management announced it was slowing enrollment in the late-stage study to allow for enrollment of a more diverse population, including younger people and people with other viruses, including hepatitis. 

Nevertheless, CEO Stephane Bancel still believes Moderna is on track to have gleaned enough data from the study to know by November whether or not mRNA-1273 is effective. 

The company has already signed an agreement to provide the U.S. government with up to 100 million doses of mRNA-1273 for $1.525 billion, assuming it wins approval. Similarly, Moderna has said it’s in negotiations for a deal to supply the European Union with up to 160 million doses.

In total, Moderna’s manufacturing investments have it targeting the capacity to produce up to 1 billion doses in 2021.

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Will we be wearing masks forever? Here's what experts think – Yahoo News Canada

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We’re now more than six months into the global pandemic, and it’s starting to feel like this bizarre version of normal might be here for a while. But, while many biopharmaceutical companies continue to work on making a safe and effective vaccine to protect against COVID-19, new comments from several prominent public health officials suggest that mask-wearing may be here to stay.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Dr. Robert Redfield, director of the Centers for Disease Control and Prevention, said Wednesday during testimony before the Senate Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies that face masks may be more protective than a vaccine. “We have clear scientific evidence they work, and they are our best defense,” he said. “I might even go so far as to say that this face mask is more guaranteed to protect me against COVID than when I take a COVID vaccine.”” data-reactid=”17″>Dr. Robert Redfield, director of the Centers for Disease Control and Prevention, said Wednesday during testimony before the Senate Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies that face masks may be more protective than a vaccine. “We have clear scientific evidence they work, and they are our best defense,” he said. “I might even go so far as to say that this face mask is more guaranteed to protect me against COVID than when I take a COVID vaccine.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, recently told Business Insider that “a combination of an effective vaccine&nbsp;and&nbsp;adherence to certain public health principles will get us to the point where we want to be, by the end of 2021.”” data-reactid=”18″>Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, recently told Business Insider that “a combination of an effective vaccine and adherence to certain public health principles will get us to the point where we want to be, by the end of 2021.”

“I never said just the vaccine,” he continued. “You never should abandon the public health measures. And the intensity of the public health measures would depend on the level of infection in the community.” If there’s little to no spread of COVID-19 in any given community, then, Fauci says, “together with the vaccine, you might want to be able to say, ‘I can safely congregate with people.’ You may want to do it with a mask, or without a mask.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Research published in the American Journal of Respiratory and Critical Care Medicine in June also found that regions in the world where people more commonly used face masks had milder COVID-19 epidemics. The authors specifically cited Hong Kong, Cambodia, Vietnam, Singapore and Thailand, among other countries, as having good mask usage and lower rates.” data-reactid=”20″>Research published in the American Journal of Respiratory and Critical Care Medicine in June also found that regions in the world where people more commonly used face masks had milder COVID-19 epidemics. The authors specifically cited Hong Kong, Cambodia, Vietnam, Singapore and Thailand, among other countries, as having good mask usage and lower rates.

“These results suggest that early public interest with face mask may be an independently important factor in controlling the COVID-19 epidemic on a population scale,” the researchers wrote.

All this raises a huge question: Are face masks here to stay? Experts say they just might be.

Dr. William Schaffner, an infectious disease specialist and professor at the Vanderbilt University School of Medicine, tells Yahoo Life that he’s thought about this “a lot” lately, and there are a few reasons why he thinks masks have staying power.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="“Most of us think that a COVID-19 vaccine will be a good — but not perfect — vaccine,” he says. If a COVID-19 vaccine is 70 percent effective, which is more effective than the flu vaccine has been in recent years, “that means for every 10 people vaccinated, three will remain as susceptible as they were before they were vaccinated,” Schaffner says. “That means the only way they can be protected and the only way we can protect them is to keep wearing masks,” he adds.&nbsp;&nbsp;” data-reactid=”24″>“Most of us think that a COVID-19 vaccine will be a good — but not perfect — vaccine,” he says. If a COVID-19 vaccine is 70 percent effective, which is more effective than the flu vaccine has been in recent years, “that means for every 10 people vaccinated, three will remain as susceptible as they were before they were vaccinated,” Schaffner says. “That means the only way they can be protected and the only way we can protect them is to keep wearing masks,” he adds.  

Dr. Amesh A. Adalja, senior scholar at the Johns Hopkins Center for Health Security, agrees. “A COVID-19 vaccine is likely not going to provide sterilizing immunity the way the measles vaccine does,” he tells Yahoo Life. “We’re going to still need to take protective measures for some time period, potentially until a second-generation vaccine is developed.”

Getting the population fully vaccinated once a vaccine is developed will also take some time and, with that, mask-wearing may become more ingrained in our culture, Adalja says.

Even once a vaccine is widely disseminated, it’s expected that some people won’t get it — and that could allow the virus to continue to spread. “The only logical thing is we will have to continue wearing masks and social distancing for quite some time,” Schaffner says.

Data has also shown that wearing masks could help affect the spread of other respiratory viruses, such as the flu. “In the Southern Hemisphere, there were very low flu rates this season — their winter — which have been partially attributed to the lockdowns and other measures,” Dr. David Cennimo, assistant professor of medicine-pediatrics infectious disease at Rutgers New Jersey Medical School, tells Yahoo Life. “So, why wouldn’t we keep using masks, at least in the winter?”

Cennimo says masks may be a good option in the future for high-risk settings and settings with close contact “even after COVID-19 has died down.” Masks could also help prevent the spread of the common cold, rhinoviruses and the flu “just the same” as COVID-19, since they’re transmitted similarly, he says. 

Schaffner says that masks may eventually become more common in the U.S., similarly to how they’re used in Eastern countries. “Perhaps we are moving more toward what’s happened for years in countries in the East where, during cold and flu season, many people wear masks to protect themselves and others,” he says. “Masks may simply become part of life.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="For the latest coronavirus news and updates, follow along at https://news.yahoo.com/coronavirus. According to experts, people over 60 and those who are immunocompromised continue to be the most at risk. If you have questions, please reference the CDC’s and WHO’s resource guides.&nbsp;” data-reactid=”44″>For the latest coronavirus news and updates, follow along at https://news.yahoo.com/coronavirus. According to experts, people over 60 and those who are immunocompromised continue to be the most at risk. If you have questions, please reference the CDC’s and WHO’s resource guides. 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Read more from Yahoo Life” data-reactid=”59″>Read more from Yahoo Life

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Want lifestyle and wellness news delivered to your inbox?&nbsp;Sign up here&nbsp;for Yahoo Life’s newsletter.” data-reactid=”64″>Want lifestyle and wellness news delivered to your inbox? Sign up here for Yahoo Life’s newsletter.

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Air Canada Introduces COVID-19 Cover Following WestJet – Simple Flying

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Continuing a widespread industry trend, Air Canada today announced that it is including complimentary COVID-19 insurance for eligible customers. This move by Canada’s largest airline follows carriers such as WestJet, Virgin Atlantic, Emirates, and more in offering COVID coverage to its passengers. 

Air Canada is heading back to Athens this month. Photo: Heathrow Media Hub

“At Air Canada, we know people have personal, family and business reasons to travel. To give them greater confidence as they do so, we have engaged Manulife to offer all Canadian residents complimentary COVID-19 emergency medical & quarantine insurance when they book round-trip flights for travel outside of Canada.” -Lucie Guillemette, Executive Vice President and Chief Commercial Officer, Air Canada

Coverage details

This coverage provides “emergency medical and quarantine insurance designed to give customers added confidence when booking flights and traveling abroad.”

According to the airline, if customers traveling abroad test positive for COVID-19, the coverage provided will give eligible customers the following assurances:

  • Up to Can$200,000 per insured for COVID-19 treatment medical expenses.
  • Up to Can$150 per person for quarantine costs (meals + accommodation); Up to Can$300 per family per day up to a maximum of 14 days.
  • Up to Can$500 for expenses related to returning home if the advisory from the Canadian government goes from Level 3 to Level 4 while at the destination.
Air Canada, Toronto Airport, COVID-19 Tests
Canadians traveling internationally with Air Canada now have an added level of assurance should they contract the coronavirus. Photo: Air Canada

Air Canada calls this “the most extensive geographical coverage included by a Canadian airline for Canadian residents, covering every international destination Air Canada serves.”

Air Canada’s holiday division also recently announced that coverage was being offered to customers. In fact, those booking with Air Canada Vacations will have a “COVID-19 Coverage and Assistance Plan” provided at no additional cost. The Air Canada Vacations policy is available to all eligible customers who book a vacation package for travel by April 30th, 2021, to eligible destinations.

More conditions than other airlines

This coverage appears to be more restrictive and has more conditions than other airline offerings. The carrier’s COVID coverage is available only to new international round-trip bookings made in Canada from September 17th until October 31st, 2020. Coverage is for travel completed by April 12th, 2021. 

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This stands in stark contrast to what Etihad is offering, where all Etihad tickets, regardless of the date of the booking, traveling between September 7th and December 31st will include COVID-19 insurance. Furthermore, guests with existing bookings won’t need to do anything as they are automatically enrolled in the program.

WestJet 787
Air Canada’s coverage for medical expenses is twice the amount covered by WestJet. Photo: WestJet

The monetary coverage itself is less than other airlines as well. At Can$200,000 for treatment and medical expenses, it is much lower than Virgin Atlantic’s £500,000 cover and the 150,000 offered by Emirates and Etihad. At least Air Canada’s medical expense coverage is more than WestJet’s maximum of Can$100,000.

What do you think of Air Canada’s COVID-19 insurance coverage? Would it persuade you to travel? Let us know your thoughts in the comments.

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