Gold continued its gains on Friday and is on the path to achieving its best weekly performance in nearly two months, as investors began to buy safe-haven assets after US President Donald Trump was infected with Covid-19.
Gold rose in spot transactions by 0.5% to 1915.34 dollars an ounce, by 06:45 GMT, to erase the losses it incurred in early trade in Asia.
While US gold futures rose 0.3% to 1922.20 dollars an ounce.
And the yellow metal gained 2.9% since the beginning of the week, and is on track to achieve the largest percentage increase since the week ending on the seventh of August.
Jeffrey Haley, chief market analyst at Oanda, said, “Trump’s diagnosis of Covid-19 has caused a significant immediate rise in gold prices, as investors flock to (safe) haven centers.”
The expert added: “I think that risk aversion will remain high … depending on how the situation develops at the end of the week, especially if more senior US government leaders are confirmed to be infected with the virus, gold may prepare for an extended wave of rise.”
The rise in gold comes at a time when US stock futures fell 2% due to the news that Trump and his wife Melania had contracted Covid-19 and entered quarantine weeks before the elections.
As for the rest of the precious metals, silver gained 0.7% and rose to $ 24.07 an ounce, rising over 5% since the beginning of the week.