Gold Back Above $1,900

Gold Back Above $1,900

Gold is back above $1,900 after sliding over 1% on Wednesday on presidential election doubts. The yellow metal’s rise in the last few hours this morning is attributed to the dollar steadying and rising hopes that Democrat Joe Biden could still win the White House, which raises hopes for a larger U.S. stimulus.

As in 2016, the race is primarily hinging on the battleground states of Pennsylvania, Michigan and Wisconsin, and officials in those states have declared that it may take days for them to count all of their ballots and declare whether Biden or incumbent President Donald Trump won the election. Nevada, North Carolina and Georgia are still up in the air this morning.

Gold futures rose 1% Tuesday to settle at $1,910.40 an ounce on Comex. The December contract advanced 1.6% in the first two days of the week after the yellow metal dropped 0.8% in October, its third consecutive monthly decline. Gold is up more than $380 — or 25% — so far this year as investors have flocked to gold because of uncertainty from the coronavirus pandemic and the economy. Currently, the December contract is at $1,899.70 an ounce and the DG spot price is $1,903.40.

Later this week, U.S. Federal Reserve policy makers are scheduled to meet and announce a rate decision on Thursday, and the key U.S. jobs report for October is scheduled to come out Friday.

Meanwhile, the pandemic worsened with new lockdowns beginning across Europe and new coronavirus cases in the U.S. nearing 100,000 a day. The virus known as COVID-19 has killed 1.21 million people worldwide and sickened 47.4 million. About 20% of the cases — and 19% of the deaths — are in the U.S. The country has 9.38 million cases, more than any other nation. Pandemic-related lockdowns have sent millions of Americans into unemployment.

Silver futures rose 1.3% Tuesday to settle at $24.33 an ounce on Comex. The December contract gained 2.9% in the first two days of the week. The most active contract increased 0.6% in October. The December contract is currently at $23.925 an ounce and the DG spot price is $24.07

Spot palladium increased 3.2% Tuesday to $2,305.50 an ounce. It gained 3.4% in the first two days of the week and dropped 4.5% in October. Spot platinum advanced 1.8% Tuesday to $879.40 an ounce and rose 3.4% in the first two days of the week. It decreased 6% in October. The DG spot price for platinum is currently $877.70 an ounce and palladium is $2,309.00.


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