Gold, silver, and copper depreciate amid strengthening dollar

Trading 04 Nov 2020 Donner votre avis

Gold prices fell on Wednesday morning as the dollar strengthened amid the first results of the US presidential election.

Thus, the cost of the December gold futures on the Comex New York stock exchange fell 0.68% ($ 13.1) and reached $ 1897.3 per troy ounce. December silver futures fell 2.17% to 23.805 per ounce.

analytics5fa29b4f1eb10.jpg

The dollar index (the dollar against a basket of currencies of six partner countries of the US) rose by 0.33% and stopped at 93.86 points.

At the moment, all the attention is shifted to the US presidential elections. The candidates for the said position are the incumbent President, Republican Donald Trump, and the representative of the Democratic Party, Joe Biden. At this moment, the counting of votes is in progress, and the markets are closely monitoring developments.

Trump is significantly closing the gap with Biden and is projected to win in key states Florida and Texas, as well as in Wisconsin, Ohio, Pennsylvania, and Iowa. Recall that a candidate needs 270 electors to win the presidential elections in the US.

At the same time, markets are losing confidence in Biden's uncompromising victory. Investors' worries were instantly reflected on the exchanges, so trading on Biden expectations weakened and the dollar strengthened.

Given the uncertainty about the outcome of the elections, the dollar is quite naturally growing as a reliable asset, which reduces the demand for gold. Despite this, the main precious metal is also traditionally considered a safe asset and has risen in price by more than 20% since the beginning of the year on the risks associated with the pandemic. However, the rising dollar makes gold less accessible to investors who have bet on another currency.

Another important event in the fate of the dollar and gold will be the meetings of the Bank of England and the US Federal Reserve, scheduled for November 5. Investors eagerly await the regulators' valuable comments on economic expectations amid the uncontrolled spread of the COVID-19 pandemic.

Copper prices also declined at the same time as gold and silver prices fell on Wednesday morning. The reason is the same - the strengthening of the dollar against the background of expectations of the results of the US presidential elections.

Thus, the cost of December copper futures on the Comex exchange decreased by 0.37% and reached $3.0875 per pound. The results of trading on Tuesday at the London Metal Exchange showed that the cost of a ton of copper for delivery in three months increased by 0.8% and consolidated at $6816, aluminum - by 2.12% (to $ 1905.5), zinc - by 1.02 % (up to $2566.5 per ton).

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

Répondre

Vous devez tre connecté pour écrire un commentaire.