We are starting to see a clearer picture of the US election, as Joe Biden has won in Wisconsin and Michigan. Bookmakers are pretty sure he will also grab Pennsylvania thanks to the postal votes while he has a chance to also overturn Georgia and a small advantage in Arizona. In a few words, he is getting closer and closer to the victory. It looks as though market expectations will prove accurate, albeit after 24 hours of suspense.
Stocks are in green, while the greenback is slowing down. This scenario is supporting gold, with the spot price jumping above $1,910. A clear climb above $1,930 would open space for further recoveries. But regardless of the name of the new US president, which now seems to be decided, the environment for gold will remain positive as central banks are forced to continue printing money to support economies. This scenario is not likely to change in the short term and would be similar with either a Democrat or a Republican in the White House.
Carlo Alberto De Casa – Chief analyst, ActivTrades
Asian shares and US Futures rose overnight while European markets also opened in the green, with benchmarks boosted by the tech and healthcare sectors. Investors remain uncertain about the future of the US presidency and more broadly about the future of the US economy as a divided Congress and Senate would prevent any of the two candidates to proceed with what they promised in terms of reforms and further stimulus aid. Investors are struggling to cope with the current unpredictability and now tend to diversify their exposure by betting on defensive stock sectors as well as Treasuries and even crypto markets. Technically speaking, most benchmarks confirm their short-term sharp rebound inside their mid-term bearish trend, trading close to the upper band of their bearish channel where they now face strong resistance. Market operators will cautiously follow reporting on the US election vote as well as the FOMC meeting due later today, where Jerome Powell may give more clues on monetary policy.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.