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Joe Biden is on the verge of winning this year’s general election, having won 264 electoral votes, just six more to win and he is far behind. This is good news for the gold market because investors believe that if Biden is president, there will be stronger economic stimulus measures than those of the Donald Trump administration.
At 4:00 p.m. Vietnam time, gold prices rose to $ 1,918 / ounce, an increase of $ 15 compared to the previous session, while silver also rose sharply by almost 2%. Platinum of other precious metals was up more than 1.3% while palladium was up almost 1.5%.
In the stock market, data from the US elections also helped sublimate the indices. The Nikkei 225 rose 1.73%, the ASX Index rose 1.28% while the Sanghai Composite rose 1.3%. The Hang Seng Index rose 2.8% to a 2-month high, and Tencent and Alibaba shares rose at least 4.1%. The CSI 300 index rose 1.5%, pointing to the highest session in the last 5 years.
Not only stocks, but also the currency market reacted strongly to the US presidential elections, in which the yuan emerged as one of the most sensitive assets. This afternoon, according to Vietnamese time, the yuan rose 0.9% to 6.6202 yuan per $ 1, the strongest level since July 2018 after having fallen 1.4% earlier. This is the highest intraday volatility since Beijing devalued the yuan in August 2015 and shook the entire international financial market. Analysts say that if Mr. Biden is president, the trade war between the United States and China will cool down or at least be more predictable.
Elsewhere, the Bank of England decided today to keep the base rate unchanged, but increased the size of the QE package to £ 875bn, compared to £ 725bn previously. The Bank of England also leaves open the possibility of being ready to act if the market worsens. Central bank monetary easing is an important catalyst to help raise the price of gold due to the need to prevent inflation.
According to the young intellectuals
