The prices of gold barely moved on Monday as investors and traders wait for more clarity on the health status of U.S. President Donald Trump after he tested positive for COVID-19 last week. Trump was taken to the Walter Reed National Military Medical Center after he had a high fever and his blood oxygen level dropped rapidly.
Spot gold is currently trading at $1,897.58 per ounce as of 0854 GMT.
Trump’s doctors said he could be discharged as early as Monday. Trump has even released videos to reassure the public that he is recovering from the coronavirus infection. But some experts not involved in the president’s treatment said Trump’s condition could be severe as evidenced by the use of dexamethasone on him. In addition, the president is in a category of patients more likely to develop severe complications or die from COVID-19.
The president’s health condition has added to uncertainty in the upcoming presidential election. An October 2-3 national poll showed that Trump now trails his Democratic opponent Joe Biden by 10 points. The survey also found that 65% of Americans believe that Trump could have avoided the infection if he has taken COVID-19 seriously.
OCBC Bank’s economist Howie Lee said the increasing political uncertainty in the U.S. is likely to limit gold selling. Phillip Futures’ senior commodities manager Avtar Sandu added that precious metals are showing some signs of fatigue and new stimulus measures in the U.S. may be needed to rally gold prices.
On the technical front, Reuters’ technical analyst predicted that spot gold prices might break the support price level at $1,896 an ounce and slide to $1,877.
In a related development, the U.S. Commodity Futures Trading Commission reported last Friday that market speculators lowered their bullish stance in COMEX gold contracts in the week that ended on September 29. Also, the holdings of the largest gold-backed exchange-traded fund in the world SPDR Gold Trust dropped to 1,275.60 tons last Friday, which reflects market sentiments.