Gold prices continue to rise before the US elections starting

Mohammed Abdelkhalik
November 3, 2020

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Gold Prices Weekly Outlook: 3rd November 2020

Gold prices rose in the European market on Tuesday to continue their gains for the third consecutive day, with the support of the US dollar decline against a basket of currencies, before the start of the US presidential election voting, to resolve the burning race between the current President “Donald Trump” and the Democratic candidate, “Joe Biden.”

Gold prices rose nearly 0.3% to $ 1,900.74, from today’s opening level of $ 1,895.60, and reached the lowest level at $ 1,887.04.

Gold Prices Chart -XAUUSD - 3rd November 2020

The precious metal “gold” ended yesterday’s trading, up by 0.9%, in the second consecutive daily gain, while continuing to recover from its lowest level in four weeks at $ 1,859.97 an ounce, in conjunction with the activity of buying the metal as a safe haven before the US elections.

Gold prices increased after the dollar index decline

The dollar index fell on Tuesday by more than 0.4%, abandoning the five-week high of 94.28 points recorded earlier in yesterday’s trading, reversing the decline in the US currency levels against a basket of major and minor currencies.

Other than selling to reap profits, the levels of the US dollar are currently declining, after recent national opinion polls in the United States showed that Joe Biden was ahead of Donald Trump in the US presidential race, which boosts the risk appetite of investors.

As Biden is expected to work quickly in the event that he wins the elections to approve a huge fiscal stimulus in the country to support the largest economy in the world to overcome the damage caused by the Coronavirus pandemic, and it is also expected that Biden will take a freer approach in global trade, which means an easing of tensions with China. And to end the differences between the two largest economies in the world, which have greatly affected the global economy.

The presidential election officially kicked off in the United States on Tuesday, as two small cities in the state of “New Hampshire” opened the doors of polling stations at midnight local time.

Gold holdings of the SPDR Gold Trust, the largest global index fund backed by gold, fell yesterday by 1.75 metric tons, the second consecutive daily decline, bringing the total to 1,255.92 metric tons, which is the lowest level since September 17th.

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.