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Original title: The market assesses the impact of the Trump couple’s new crown pneumonia and gold closes slightly. Source: Financial Industry Website
Although US President Donald Trump and his wife announced that they contracted the new crown pneumonia and will be isolated in the White House for several days, gold futures prices still closed on Friday.
The price of gold futures for December delivery on the New York Mercantile Exchange fell US $ 8.70 to close at US $ 1,907.60 an ounce, a decrease of 0.5%. Previously, the contract closed 1.1% higher in Thursday trading, the highest in about two weeks. Closing price. According to data provided by financial information provider FactSet, based on the main contract, the price of gold futures has risen 2.2% in the overall transaction this week. Prior to this, prices for WTI futures and Brent crude oil futures fell in September trading.
With the unexpected news that Trump has contracted the new crown pneumonia, the campaign between him and former Vice President and Democratic candidate Joe Biden (Joe Biden) is heating up. Some strategists speculated that the news forced investors to accept Biden’s leadership, after he had already taken advantage of most national polls.
Colin Cieszynski, chief market strategist at SIA Wealth Management, said that “after the news of Trump’s diagnosis, the price of gold rebounded slightly overnight,” but then “due to Obviously, this news did not provoke investors panicked and pulled out of the stock market and flooded defensive safe-haven assets like gold, “and the price of gold fell. At the same time, the US stock market fell on Friday, but the fall in the Dow Jones Industrial Average was “much smaller than the 400 point drop in the Dow futures market hours before the open,” he said.
Ryan Ginortto, head of research at GraniteShares, said: “The Fed has not introduced new stimulus measures and political stagnation has caused a delay in financial assistance. This has been the dominant factor behind the drop in gold prices and the strengthening of the dollar “. However, he noted: “The failure to introduce additional stimulus measures is not completely bearish for the price of gold, because the demand for currency and financial support from the stock market far exceeds gold. Economic optimism has weakened, Together with Disney, the second wave of large-scale layoffs by companies like American Airlines has intensified, and they have strongly emphasized this point and highlighted the demand for gold as a diversified asset. “
At the same time, the US presidential elections have increased uncertainty. Trump’s diagnosis of the new corona pneumonia “emphasizes the reality of the risks before us,” Ginoto said, adding that gold prices may rise further.
Also, after last week’s rally, the US dollar exchange rate has fallen this week. At the close of the gold futures market on Friday, the Intercontinental Exchange (ICE) US dollar index, which tracks the exchange rate of the US dollar against the six major international currencies, rose slightly 0.1%, but in so far this week it has fallen 0.9%. Under normal circumstances, a fall in the exchange rate of the US dollar will increase the price of futures of commodities denominated in US dollars, such as gold and crude oil, because investors in other currencies will have lower costs to buy these products. basic and vice versa.
In terms of economic data, data released earlier on Friday showed that the number of new non-farm jobs in the United States in September was 661,000, much lower than expected. After the report was released, the price of gold fell in response. Subsequently, the data showed that US factory orders rose 0.7% in August, rising for the fourth consecutive month, causing gold prices to temporarily regain some of the lost ground.
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