Gold Edges Up On Monday As Dollar Weakens On Donald Trump's Health Progress
Gold has risen about 25 per cent this year, supported by massive stimulus by governments and central banks worldwide as the metal is seen as a hedge against inflation and currency debasement.
Gold inched up on Monday because the greenback weakened, though good points have been restricted as information that US President Donald Trump, receiving remedy for COVID-19, could possibly be launched from hospital boosted threat sentiment. Spot gold was up 0.1 per cent at $1,900.46 per ounce as of Monday monrning. US gold futures have been down 0.2 per cent at $1,904.50.
“There are two opposing forces at work in the gold market, on the one hand we’ve the perception that the US president is doing better and that he may be released from the hospital today and that’s driving positive risk sentiment,” stated UBS analyst Giovanni Staunovo. “There are two opposing forces at work in the gold market, on the one hand we’ve the perception that the US president is doing better and that he may be released from the hospital today and that’s driving positive risk sentiment,” stated UBS analyst Giovanni Staunovo.
Global shares rose on Monday after information that Mr Trump could possibly be discharged from hospital as quickly as Monday, though outdoors specialists warned that his case could also be extreme. Global stocks cheered news that Trump could be discharged from the hospital as soon as Monday, although outside experts warned that his case may be severe. Trump’s COVID-19 infection has also raised uncertainties around the U.S. presidential election on Nov. 3. “Considering a Blue Wave would likely result in the largest package, Biden’s election odds are increasingly likely to drive gold prices in the coming month.”
Global shares continued to rose on Tuesday as well with Indian indices showing the maximum gains as their benchmark Nifty was up 1.5%. Commodity prices too showed some signes of recovery but will remain volatile in the coming month. Gold over the years have given the investors a significant return and this year too has been a boon for Gold. Gold prices have supported the silver prices as well and is trading well beyond $19 on Comex. Crue though is facing stiff resistance and will take some time to bounce back as the inventory is on a rise since the begining of this year.