(Bloomberg) — Gold jumped and copper fell as investors awaited the final outcome of the U.S. presidential election, with Joe Biden on the brink of taking the White House from Donald Trump.
The still-unresolved outcome — due to an unusually large number of mail-in ballots because of the coronavirus — spurred the market to reassess the potential scale and timing of a much-needed U.S. fiscal stimulus package, the trajectory of the dollar and appetite for risk.
Bullion rose past its 50-day moving average as the U.S. dollar fell amid improving risk sentiment, with investors beginning to price in a Biden presidency. The dollar weakness also helped boost crop prices. “A Biden win with a Republican-controlled Senate is likely to deflate the reflation focus; but that could be offset by the volatile political outlook that now awaits in Washington,” said John Hardy, head of FX strategy at Saxo bank A/S. Congressional Democrats […]
November 5, 2020 (updated November 5, 2020) Published by StockMan