Gold Cautious as Markets Worry About Impact of Trump's Diagnosis

Gold Cautious as Markets Worry About Impact of Trump’s Diagnosis

Posted Monday, October 5, 2020 by
Arslan Butt • 1 min read

Early on Monday, gold prices are trading somewhat steady with the safe haven appeal enjoying support as a result of rising uncertainty around US President Donald Trump’s COVID-19 diagnosis and its potential impact on global markets. At the time of writing, GOLD is trading at a little above $1,892.

During the previous week, after reports emerged that Trump and his wife had tested positive for coronavirus, markets went into a risk-off mode amid uncertainty of the diagnosis’s impact on the US economy and the upcoming presidential elections that are less than a month away. Markets also saw increased volatility over conflicting reports from the White House regarding Trump’s health and hospitalization status.

Late last week, gold received a boost after the NFP report revealed a slowdown in job creation in the US during September. The disappointing employment report once again highlights the need for more fiscal stimulus measures to be rolled out to support economic recovery in the country, further strengthening the safe haven appeal of the yellow metal.

This week, gold traders are likely to focus on updates from central bank officials, including Fed Chair Jerome Powell and ECB’s Christine Lagarde, who are scheduled to speak at the NABE conference. In addition, minutes from the Fed’s last monetary policy meeting and the US vice presidential debate will also be in focus this week.

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