This week, the overall risk-taking climate did not prevent gold from soaring, rising 3.8% in 5 sessions, its best week in 3 months. Gold for the Comex December futures contract rose 0.3 percent on Friday to $1,951.71. The yellow metal benefited from the uncertainties in the White House race, but also from the dollar lose, making it cheaper to buy raw materials for foreign investors.
In the face of election uncertainty and the resurgence of coronavirus in the United States, oil prices dropped sharply on Friday. December contract for U.S. light crude (WTI) lost 4.3 percent to $37.14 on the Nymex whereas the January delivery Brent contract lost 3.6% to $39.45. The drop is likely to be upon fears of further lockdowns as the health situation in the United States continues to worsen. The number of new coronavirus cases rose from less than 50,000 a day in September to more than 100,000 after Wednesday. There were more than 120,000 new infections detected as of Thursday. There is also a rapid increase in the number of hospitalizations, especially in the states of Missouri and Iowa, where reception capacity is now close to saturation.
According to data from the Covid Monitoring Project, Ohio, Indiana, Minnesota, Nebraska, North Dakota, and New Mexico also face a sharp rise in COVID cases. According to the Johns Hopkins University count, the virus continues to kill more than 1,000 individuals a day, taking the total number of deaths to more than 233,700 on Friday in the United States.
In this worsening situation, on Friday, the dollar also gave up another 0.2 percent to a dollar index of 92.33 points, which tests its evolution against a basket of six currencies. The greenback is trading near two-year lows, while the euro is trading at $1.1878 on Friday with a rise of 0.48 percent. The dollar, which had been growing as a safe haven in recent weeks, has suffered in recent days from a return to risk appetite.