Gold climbs on soft dollar this morning after slipping overnight as equities gained on the possibility that U.S. President Donald Trump, who was hospitalized Friday for COVID-19, might be released as soon as Monday.
But mixed messaging about his condition over the weekend — and uncertainty over the upcoming U.S. presidential election — kept a floor under prices, as did a falling dollar.
Gold futures rose 2.2% last week to settle at $1,907.60 an ounce on Comex, even as the December contract slipped 0.5% Friday. The yellow metal lost 4.2% in September. Gold is up almost $400 — or 25% — so far this year as investors have flocked to gold because of uncertainty from the coronavirus pandemic and the economy. Currently, the December contract is $1,913.10 an ounce and the DG spot price is $1,908.10.
Trump announced his positive COVID-19 test early Friday, triggering a drop in markets. He was admitted to the hospital on Friday afternoon, after the markets closed.
Doctors revealed over the weekend that Trump’s oxygen levels had dropped twice and he was put on steroids, potentially indicating a serious case of the coronavirus. But Trump left the hospital for a drive-by to wave at supporters on Sunday. White House Chief of Staff Mark Meadows had previously briefed reporters that the president’s condition had been more serious than previously indicated.
In addition to Trump’s condition, investors were closely watching negotiations between House Democrats and the Republican White House for new federal stimulus measures as the economy reels from the pandemic. Stimulus efforts are typically bullish for gold.
Meanwhile, New York Mayor Bill de Blasio on Sunday proposed closing schools and nonessential businesses in nine zip codes were COVID-19 cases were rising, signaling that the largest U.S. city may be facing a new wave of infections.
The virus has killed almost 1.04 million people worldwide and sickened 35.2 million. About 21% of the cases — and 20% of the deaths — are in the U.S. The country has 7.42 million cases, more than any other nation. Pandemic-related lockdowns have sent millions of Americans into unemployment.
Silver futures rose 4.1% last week to settle at $24.03 an ounce on Comex. The December contract dropped 0.9% Friday. The most active contract plunged 18% in September after gaining 18% in August and soaring 30% in July. The December contract is currently $24.150 an ounce and the DG spot price is $24.01.
Spot palladium increased 4.2% last week to $2,342.90 an ounce, though it dropped 0.7% Friday. Spot platinum gained 4% last week to $888.70 an ounce, but it dropped 2.3% Friday. The DG spot price is currently up for for platinum and palladium to $892.00 and $2,364.60, respectively.
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