Gold price edged down after reports on Trump’s positive medical assessment circulated commodity news.
The event added to the political uncertainty around the globe, only a month ahead of November elections happening in the world’s most powerful economy.
The US leader is set for discharge today from Walter Reed National Military Medical Center.
This is quite fast of a recovery period after he and his wife, Melania Trump, were reported to have contacted the virus late last week.
Spot gold settled at a nearly flat figure of $1,896.21 per ounce while US gold futures slashed 0.3%, trading in contango at $1,902 per ounce.
Commodity patrons are at a red alert for the next stimulus bill to ease the pandemic’s economic blow.
As asserted by a needs expert, the market needs a fresh stimulus bill to stir market excitement and rally the precious metals prices anew.
In the current situation, Trump’s hospitalization brought a new batch of uncertainty on whether the next economic cushion’s approval could take place.
Investors are currently weighing the opportunity cost of letting their bullion go, seeking further clarity during a time when market reluctance prevails.
Since the start of the stock market, currency, and oil price frenzy during the pandemic’s early onset, the non-yielding yellow metal was seen as the best bet to hedge against inflation.
It has risen by approximately 25% so far in the year, supported by high-stake stimulus bills entered into force worldwide and the central banks’ decision to keep interest rates at nearly zero levels.
It has reached its all-time peak of $2,072.50 in August before falling by 8% to its current figures.
What Should Commodity Investors Expect?
Investors eye further significant developments that could stir the market as the week unfolds.
The Federal Reserve’s Jerome Powell is set to deliver a keynote address tomorrow to the National Association of Business Economists conference, followed by the release of details from the Fed’s September meeting a day after.
The market is hopeful that Powell will finally give a glimpse of the next stimulus package that could be a bullish push for precious metals.
According to analysts, investors should expect an update on the current loopholes on the V economic recovery but not on the monetary cushion due to lack of support from lawmakers.
After the gold dropped, silver rose by 0.8%, currently trading at $23.88 per ounce. At the same time, platinum and palladium dipped by 0.2%, respectively.
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