Gold gains after Trump tests positive for pandemic infection

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Gold gains after Trump tests positive for pandemic infection

Precious spot gold futures’ prices rose in the early US trading session on Friday and have been well on course to score its best week in more than two months, as the media report on US President Donald Trump and his wife Melania having been tested positive for the pandemic pathogen had switched the scary investors to a flight-to-safety mode.

More importantly, Friday’s rally of spot gold futures’ prices followed a 1 per cent rise of the safe-haven yellow metal on yesterday, while the bullion had surpassed a psychological support level of $1,900 per ounce.

Gold futures’ prices had gained 2.6 per cent thus far this week, heading towards its largest weekly percentage rise since early-August.

Gold prices hit 1-1/2-week peak as Trump tested positive for pandemic virus

Citing statistics, while this report was being prepared, in the late-afternoon European trading on Friday, the spot gold futures’ prices were up by 0.15 per cent to $1,908.78, while the bullion had spiked to just a notch shy of its two-week peak to $1,917.59 in the morning European trading, reversing losses from early Asian trade.

Nonetheless, the US gold futures’ prices had ebbed off 0.1 per cent to $1,915.10. In point of fact, investors began to sell-off riskier assets likes of UK black gold futures’ prices, which had been down by over 4% for the day during preparation of the report to $39.34 per barrel after the US President Donald Trump had been quoted saying on Friday morning that he and his wife Melania, had been tested positive for the pandemic contagion and would be going into quarantine.

In tandem, while Trump’s test result for the pandemic infection came forth a day after one of his top associates had been tested positive, citing possibilities of further upside momentum for the gold futures’ prices over the coming weeks, a Saxo Bank analyst Ole Hansen wrote in a client note earlier in the day, “It will now be a wait-and-see game where gold will attract some bids. It’s certainly not a market where I see any appetite for selling gold”.