Spot gold was last up 0.1% on the day at $1,908 an ounce, having bounced off an earlier low of $1,889.90 an ounce as the news of Trump’s positive test broke. The yield on the 10-year US Treasury fell 2 basis points on the day to 0.659%, set for its biggest one-day decline in nearly two weeks.
Oil, one of the most sensitive commodities to geopolitics and the economy, plunged by as much as 4% at one point. Brent crude futures were most recently down 3.1% at $39.67 a barrel, while West Texas Intermediate futures fell 3.1% to $37.55 a barrel.
“News that Donald Trump has contracted Covid-19 adds to the bearish pressure,” the SEB chief commodities strategist Bjarne Schieldrop said. “It was always a big wild-card in this election whether one of the candidates would contract C-19 thus placing the candidate on the side-lines.”
Highlighting the investor flight from risk was a drop in cryptocurrencies, with bitcoin down by more nearly 4% on the day, while Ethereum fell by 7%.