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Each ounce rose to $ 47 yesterday, bringing the spot price of gold closer to $ 1,950.
This is the highest milestone since the end of September. This morning, the price of gold fell slightly to $ 1,947 an ounce.
The market is rising as investors increasingly believe in the possibility of Joe Biden electing the president of the United States, which means that the stimulus will be greater and the dollar will depreciate. “The likelihood that we will have a Democratic president next year is growing,” said Michael Matousek, commercial director of US Global Investors.
Movements in world gold prices in recent sessions.
US stocks yesterday also soared due to this possibility. The DJIA was up 2%, the S&P 500 was up 1.9% and the Nasdaq Composite was up 2.6%. All three are on track to have their best week since April.
Meanwhile, the dollar bottomed out two weeks as Biden stepped into the White House after victories in Michigan and Wisconsin. He is expected to apply stronger stimulus measures than President Donald Trump, although investors are still concerned that Republican control of the Senate will make it difficult to pass these policies quickly.
Gold is considered a traditional tool to hedge against inflation risks and currency devaluation. Since the beginning of the year, the price of gold has increased by more than 25%.
“In addition to the US elections, the general macroeconomic environment continues to support precious metals. We expect the dollar to continue weakening, real interest rates remain negative and there will be more stimulus,” he added. Cooper, an analyst at Standard Chartered, said.
Other precious metals also rose strongly yesterday. Silver was up 4.9% at $ 25.09 an ounce. Platinum rose 2.2% to $ 888.3. Palladium increased 3.4% to $ 2,365.
Ha Thu (Theo Kitco, Reuters)
