Gold futures are trading higher on Monday as investors react to a weaker U.S. Dollar and a rise in demand for higher risk assets. We’re not going to try to read into the move, but we suspect it’s tied to position-squaring ahead of Tuesday U.S. presidential elections since there were no major events over the weekend.
At 12:30 GMT, December Comex gold is trading $1892.10, up $12.20 or +0.65%. Downturn in US Dollar Driving Price Action
Earlier in the session, dollar-denominated gold was pressured by firmer demand for the safe-haven U.S. Dollar and Japanese Yen as tensions grew before Tuesday’s presidential election.
The reversal in the price action came as no surprise as expected swings in the major currencies climbed to their highest since April as investors waited for the outcome of an election that will have serious implications for the dollar’s outlook over the coming months.“Volatility is rising because liquidity […]
November 3, 2020 (updated November 3, 2020) Published by StockMan