Gold Rises With Growing Caution About The Outcome of The US Election

Gold prices rose in a limited range Thursday (November 5th), as investors expressed cautious optimism about Democratic candidate Joe Biden’s victory over his rival, President Donald Trump, in the close-range US presidential elections.

Analysts expect Biden to likely take greater stimulus measures than his rival, the Republican president, although the likelihood of a Congressional split between Democrats and Republicans could undermine Biden’s fiscal policy efforts.

Gold is benefiting from widespread stimulus measures given that it is widely seen as a hedge against inflation and the currency’s decline. By 06:00 GMT, spot gold rose 0.3% to $ 1909.41 an ounce.

Gold in US futures rose 0.7% to $ 1909.80.

On Wednesday, Biden expected victory in the elections after winning in critical states, while Trump spoke of allegations of fraud, filed lawsuits and demanded a recount.

At the same time, the dollar retreated after strong gains in the previous session, making the precious metal less expensive for holders of other currencies.

As for the other precious metals, silver rose 1.4% to $ 24.23 an ounce. Platinum rose 0.6% to $ 874.98 an ounce. Palladium rose 0.6% to $ 2,302.67 an ounce.