Gold exhibits growth amid results of the recent US elections

Trading 09 Nov 2020 Donner votre avis

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Gold prices traded upward Monday morning, however, the pace of this growth is not as rapid as analysts predicted. Market participants reacted to the results of the recent US presidential election, particularly in Joe Biden's victory. From one acute problem, markets are now switching to another, which may change the balance of power more significantly.

Indeed, much attention was temporarily shifted to the recent US elections, which has drawn the coronavirus crisis aback. However, over the past time, the problem of the growth of coronavirus infection has only worsened, and investors are forced to respond accordingly.

The price of gold futures contracts for December delivery on the electronic trading platform in New York gained 0.58% or $11.2, which sent it to $1,963.1 per troy ounce. In turn, this brought the metal closer to the next high strategically important mark of $2,000 per barrel.

Silver futures for December delivery also rose 1.36%, pushing it to $25.98 per troy ounce.

Market participants continue to monitor developments on the results of the US presidential election. The vote count showed that Joe Biden won, but the former leader does not intend to give up and is going to file lawsuits over the procedure for counting votes. Meanwhile, it should be noted that Biden's victory suggests that Congress will be controlled by two leading parties – the Democratic and Republican. And this is an ideal option for all markets, including the precious metals market, because in this case, a sharp change in the country's political course will be excluded, which means that sharp jumps in the political course are almost leveled.

However, the recent anti-records on the coronavirus infection in the world is severely affecting the precious metals market. The pandemic continues to gain momentum, and its pace is getting faster every day. To date, the total number of infections already rose to 10 million, and last week another daily anti – record of 126 thousand new cases was observed. Of course, investors are forced to react to such news. However, it is worth noting that the deterioration of the epidemiological situation may even play into the hands of the precious metals market.

The cost of copper also exhibited positive dynamics on Monday against the background of the strong growth of stock indexes in the Asia-Pacific region, following the results of the US presidential election.

Copper futures for December delivery rose 0.51% hitting $3.1698 per pound.

The material has been provided by InstaForex Company - www.instaforex.com

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