Commodities News Shares

Gold Down Despite Lack of Faith in U.S. Presidency


Gold’s standing being a safe-haven became more dubious on as the prices dipped despite President Donald Trump testing positive for the coronavirus Friday. The dollar, the metal’s that is yellow, gained instead, once again highlighting the bizarre relationship between the two in recent months.

U.S. gold for delivery settled at $1,907.60 an ounce on brand new York’s Comex, down $8.70, or nearly 0.5per cent, on the day December. It fell as much as $21 earlier in the session, striking a session low of $1,895.20.

For the week though, the silver that is benchmark contract rose 2.2%, accounting for gains made earlier in the week.

Spot gold, which reflects trades that are real-time bullion, was down $4, or 0.2percent, at $1,902 by 4:04 PM ET (20:04 GMT), following a session low at $1,889.93. Gold’s standing being a safe-haven became more dubious.

Trump announced via Twitter on Thursday night after he tweeted that Hope Hicks, one of his closest aides at the White home, have been infected as well which he and First Lady Melania Trump had tested positive for the COVID-19, hours.

Yet, silver, the perceived secure haven for both financial and economic problems, fell sharply after the news about Trump broke, before its recovery that is partial later the day.

The Dollar Index, which pits the greenback against six currencies that are major was up 0.2% at 93.918 late on Friday. The dollar has gone from strength-to-strength since very early August — despite a gaping U.S. deficit that is fiscal coronavirus-related investing, a record recession, historic unemployment along with other economic ills attributable to the pandemic.

The rally that is logic-smashing the DX, due to the fact index is also known, has been one regarding the main reasons for gold’s failure to recapture the $2,000 highs it fell from in August.

Another reason for gold’s performance that is anemic been having less new U.S. financial stimulus for COVID-19, with the first, passed by Congress in March, having run away from its approved $3 trillion.

Republicans aligned with Trump and their Democrat competitors in Congress have been unable to agree on exactly how large the stimulus that is next be, because of the White House suggesting for the package of just around $1.5 trillion against the $2.2 trillion proposed by Democrats.


Billy Houghton

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