Gold’s standing as a safe-haven, became a doubt at its last trading session, as prices plunged, as President Donald Trump tested positive for COVID-19.
U.S dollar, the yellow metal’s arch-enemy, rose up to the occasion instead, once again highlighting the odd relationship between the two safe-haven assets in recent times.
Gold futures settled at $1,907.60 an ounce, on down 0.45% on the day. It should be said it dropped about $12 earlier in the trading session, hitting an intra-day low of $1,895.20.
However, for W/W, the Gold futures contract gained 2.2%, accounting for gains made earlier in the week.
President Trump announced via his official Twitter handle on Friday morning, that he and his wife, Melania, had tested positive for the COVID-19; hours after he tweeted one of his closest aides, had been infected as well.
The greenback index on the other end users, used in gauging the U.S dollar strength against six major currencies settled up 0.15% at 93.907
Milan Petkovic, Market Analyst at Axi, in a note to Nairametrics spoke on the prevailing macro affecting the precious metal market by saying;
“The effects of Trump catching the coronavirus on the upcoming election, are difficult to assess at this point.
“He might only have mild symptoms and will be able to continue carrying out his duties.
“However, should his health deteriorate, the increased uncertainty would lead to a volatility spike, and investors would likely rush into safe-havens.”
Meanwhile, UK Prime Minister, Boris Johnson, signaled that he will intervene in the on-going Brexit negotiations, and meet with EU Commission President, Ursula von der Leyen, on Saturday.