Skip to main content

Commodities | Gold Price Report: Gold bounces on dollar retreat as Biden moves closer to election win

 



Gold bullion bars are pictured after being inspected and polished at the ABC Refinery in Sydney on August 5, 2020.

Gold bullion bars are pictured after being inspected and polished at the ABC Refinery in Sydney on August 5, 2020.

DAVID GRAY | AFP | Getty Images

Gold jumped to a two-week high on Thursday as the dollar slipped, with investors betting on the likelihood of bigger economic support measures as Democrat Joe Biden inched closer to the Oval Office in the U.S. election.

Spot gold was up 0.9% at $1,919.61 per ounce, having earlier scaled its highest peak since Oct. 22 at $1,920.91. U.S. gold futures gained 1.3% to $1,921.30.

The dollar index fell to a more than one-week low, making bullion cheaper for those holding other currencies.

“A Democrat in the White House would lead to a weakening of the dollar because of the additional spending and the nature of the mandates that he would set,” said StoneX analyst Rhona O’Connell.

“The weaker dollar is not necessarily reflecting the loss of confidence or anything, it’s more a question of what the markets would expect from a Biden presidency.”

Biden moved closer to victory on Thursday, while incumbent President Donald Trump alleged fraud and called for recounts even as officials tallied votes in the handful of states that will determine the final outcome.

Analysts expect Biden would enact larger stimulus measures than Trump, but chances of a divided Congress could stymie Biden’s fiscal policy.

“If the Democrats win the Senate and Biden becomes the president we would see a much larger stimulus package than both parties will probably agree on right now,” said Commerzbank analyst Daniel Briesemann.

Gold is considered a hedge against likely inflation fuelled by the unprecedented money printing by central banks to ease the economic blow from the COVID-19 pandemic.

Also on investors’ radar was the U.S. Federal Reserve’s policy decision at 1900 GMT.

Silver gained 2.9% to $24.61 an ounce. Platinum rose 2% to $886.49, while palladium jumped 3.3% to $2,364.44.

Comments

Popular posts from this blog

Analysis | The Cybersecurity 202: How the shutdown could make it harder for the government to retain cybersecurity talent

By Joseph Marks 13-17 minutes THE KEY President Trump delivers an address about border security amid a partial government shutdown on Jan. 8. (Carolyn Kaster/AP) The partial government shutdown that's now in its 18th day is putting key cyber policy priorities on hold and leaving vital operations to a bare bones staff. But the far greater long-term danger may be the blow to government cyber defenders' morale, former officials warn. With the prospect of better pay and greater job security in the private sector, more government cyber operators are likely to decamp to industry, those former officials tell me, and the smartest cybersecurity graduates will look to industry rather than government to hone their skills. That’s especially dangerous, they say, considering the government’s struggle to recruit and retain skilled workers amid a nationwide shortage of cybersecurity talent. About 20 percent of staffers are furloughed at the De

Democrats call for investigation into Trump’s iPhone use after a report that China is listening:Analysis | The Daily 202 I The Washington Post.

washingtonpost.com By James Hohmann _________________________________________________________________________________ President Trump and Chinese President Xi Jinping visit the Great Hall of the People in Beijing last November. (Andrew Harnik/AP) With Breanne Deppisch and Joanie Greve THE BIG IDEA: If Democrats win the House in two weeks, it’s a safe bet that one of the oversight hearings they schedule for early next year would focus on President Trump’s use of unsecured cellphones. The matter would not likely be pursued with anywhere near the gusto that congressional Republicans investigated Hillary Clinton’s use of a private email server during her time as secretary of state. Leaders of the minority party have higher priorities . But Democratic lawmakers made clear Thursday morning that they will not ignore a New York Times report that Trump has refused to stop using iPhones in the White House, despite repeated warnings from U.S. intelligence offici

RTTNews: Morning Market Briefing.-Weekly Jobless Claims Edge Down To 444,000. May 13th 2010

Morning Market Briefing Thu May 13 09:01 2010   Commentary May 13, 2010 Stocks Poised For Lackluster Open Amid Mixed Market Sentiment - U.S. Commentary Stocks are on pace for a mixed start to Thursday's session, as a mostly upbeat jobs report continued to relieve the markets while some consternation regarding the European debt crisis remained on traders' minds. The major index futures are little changed, with the Dow futures down by 4 points. Full Article Economic News May 13, 2010 Weekly Jobless Claims Edge Down To 444,000 First-time claims for unemployment benefits showed another modest decrease in the week ended May 8th, according to a report released by the Labor Department on Thursday, although the number of claims exceeded estimates due to an upward revision to the previous week's data. Full Article May 13, 2010 Malaysia's Decade High Growth Triggers Policy Tightening Malaysia's economy grew at the fastest pace in a decade in