Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Gold Jumps as US President Trump Tests Positive for Covid
October 2, 2020 - (Gold Market Wire) - Gold prices have jumped as high as $1917 an ounce on news that US President Donald J. Trump has tested positive for Covid-19. The chart shows the news related spike:
While definitely a news-related spike, it wasn't without some technical foundation as the 30-minute chart above shows. The bottom of the short-term channel was the lift off point, and we have cleared the important $1906 horizontal resistance the we defined yesterday. The question will be whether or not it can hold on the close.
The idea of Trump becoming ill has relevance in the Gold market, as anything that gets the Democrats nearer the White House will be seen as a negative for the US Dollar and Gold Positive. Equally important is that if Trump survives without major illness, the political hysteria over Covid may be reduced. Trump is after all considered "high risk" because of his age and his weight.
Those who took positioned length yesterday should probably try and use the spike to get out and look to re-enter at a lower level. News spikes never last, and, as the chart shows, this one is no different, having already started to retrace.