Gold strong as Biden leads in US presidential election race
- 05 Nov 2020
GulfToday Report
Gold remains firm on Thursday as investors remain positive of Joe Biden winning the US presidential election.
Spot gold rose 0.3% to $1,909.41 per ounce by 600 GMT. US gold futures gained 0.7% to $1,909.80 per ounce.
Democrat Joe Biden win comes with the expectation of more stimulus injected into the economy.
Gold is commonly seen as a protection against inflation and currency debasement, therefore, it will most likely benefit from the stimulus measures.
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On Wednesday President Donald Trump filed lawsuits against alleged fraud and demanded a recount after Joe Biden won two critical US states.
Margaret Yang, a strategist with DailyFx said gold traders are not happy with the lawsuits. A contested result could mean a smaller fiscal stimulus plan.
According to Reuters technical analyst Wang Tao, spot gold remains neutral on the technical front with a range of $1,887 to $1,912 per ounce.
Silver rose 1.4% to $24.23 an ounce. Platinum gained 0.6% to $874.98, while palladium was up 0.6% at $2,302.67.