Gold price rises overnight, after unsettled trading in Asia

The gold price ticked up to over US$1,750 per ounce amidst unsettled trading in Asia overnight. The rise comes even as the US dollar remains relatively strong, and is a sign that investors remain willing to spend when it comes to laying in a hedge against uncertainty. In particular, traders are fretting about the possible impact of a second wave of coronavirus. A new outbreak in Beijing initially spooked markets, although the latest commentary has given some indication that the new outbreak has been contained locally. Meanwhile, President Trump of the US has been ratcheting up his anti-China rhetoric even as he appears to be losing ground in the polls. Trump continues to blame China for the coronavirus outbreak, and many market watchers are pointing to the known existence of a bioweapons laboratory near the epicentre of the virus outbreak in Wuhan as significant circumstantial evidence supporting his argument. Even so, market watchers are uncertain about what will come next for gold. An analyst at Swissquote Bank said Monday morning it was either going to go lower or higher, to US$1,725 or above US$1,800. The trend is probably towards the upside, given that the US election is getting nearer by the day and much uncertainty remains.