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Daily market commentary: Gold spikes up by over $20



FOREX

Risk aversion is the dominant narrative on Friday morning, as the financial markets process the revelation that the US president has contracted COVID. Volatility increased dramatically and traditional safe havens, such as the Japanese yen and the dollar, are gaining ground versus risk related currencies, such as the euro.

The illness of Donald Trump can potentially generate uncertainty over the leadership of the USA and traders moved quickly to price that in, driving volatility up and supporting refuge assets.

EURJPY chart

Ricardo Evangelista – Senior Analyst, ActivTrades

daily market analysis

GOLD

Just a few minutes after the announcement that Donald Trump and his wife tested positive to coronavirus, gold has spiked up by over $20. This happened while S&P and Down Jones futures lost more than 1% and the dollar started to weaken again.

Bullion is now testing again the resistance level of $1,920, while investors are trying to understand the effects of this news and how the US election campaign will be impacted. While it is too early to judge the full ramifications, gold is again confirming its strength as investors attention on the precious metal remains significant.

Carlo Alberto De Casa – Chief analyst, ActivTrades


Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.

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Daily market commentary: Gold spikes up by over $20

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