Gold Traders Holding on Amid COVID-19 AttacksGold prices started its first trading session on a relatively bullish note amid global investors taking hold on safe-haven assets ahead of the US presidential election and Federal Reserve policy meeting coming up shortly.
Gold prices at the time of writing this report traded around $1,880/ounce.
Gold traders are presently having a lot on their table, as recent opinion polls show Democrat Presidential Candidate Joe Biden ahead, however at battleground states (Pennsylvania, Florida, Arizona, and Wisconsin)it remains to close to call, thereby limiting their resolve in going long at the precious metal market
That said gold bulls are expected to be having the bandwagon seat at least in the course of the week on the macro showing Europe’s COVID-19 caseloads seem to be going out of control, at infection rates propel to cross the milestone of 10 million caseloads amid fresh lockdown measures seen in France, United Kingdom and Portugal.
Gold traders are also aware of the recent surge in the value of the US dollar leading to more caps on gold bulls resolve to break above the $1,900/ounce, and lowering the precious metal appeal to other currency traders momentarily.
In addition, gold traders would be focusing all their attention now on the most important political event in 2020 scheduled to hold tomorrow, the U.S election, on the bias that a ‘blue wave’ win ( this include a Joe Biden presidency, Democrats taking control of the Senate, and maintaining its grip on the House) would attract more stimulus packages at unprecedented levels, meaning metals like gold are expected to outperform in such market conditions and thus likely to trade close to $2,000/ounce by the end of 2020 if such results come to reality..
But a split in Congress or very close election results in the U.S congress after Nov. 3 would bring the bears back into play on sentiments that currency traders would increase their buying pressure on the U.S dollar momentarily.