Gold prices were rocked by uncertainties on Monday morning, as investors sought more clarity on developments in Donald Trump’s health after he tested positive for Covid-19 on Friday.
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Spot gold was nearly flat at $1,896.21/oz, while US gold futures were down 0.3% at $1,902. Howie Lee, an economist, asserts there will be reluctance to sell gold at this stage because of the increasing amount of uncertainty about Trump’s health and the upcoming November 3 American presidential election.
Trump was flown to a military hospital from the White House for coronavirus treatment on Friday amidst conflicting signals about the severity of his condition outside the hospital with an impromptu motorcade on Sunday raising speculations that he is on a steady recovery.
Also on investors’ watch list were negotiations about new US coronavirus relief aid aimed to cushion the economic blow from the pandemic.
“There is a need for new stimulus measures to rally gold prices. Without this mojo, there are signs of fatigue creeping into precious metals, with sentiment shifting in the favour of bears,” Avtar Sandu, a senior commodities manager at Phillip Futures, stated.
Gold, seen as a hedge against inflation and currency debasement, has risen about 25% in 2020 supported by unprecedented stimulus measures by governments and central banks worldwide to revive their coronavirus-ravaged economies. However, the yellow metal has retreated 8.4% since hitting a record peak of $2,072.50 in August.
Frontpage November 29, 2019