In the Asian session on Monday, the DOLLAR index continued to come under pressure, now trading around 92.15. Spot gold maintained a rebound trend, as high as close to $1960 an ounce. Over the weekend, gold bulls were cheered by predictions that Biden would step up economic stimulus efforts after he was declared the winner by major U.S. media. After the US media predicted biden’s victory, Mr Trump insisted he was the winner of the election. Mr Trump continued to accuse the election of fraud and his team urged supporters to prepare for protests. In addition, it should be noted that the results of the US election have not been confirmed by the US judicial process. Gold may benefit from the uncertainty that the U.S. election drama will not be over for some time to come and that could roil markets.
The us election is not over yet! Trump tweeted: When will the media announce the next President?
On November 8, Beijing time, CNN (CNN), NBC (NBC) and the BBC (BBC) and other foreign media have released predictions that democratic Presidential candidate Joe Biden will be elected.
Shortly after biden’s victory was announced, a number of world leaders, including British Prime Minister Boris Johnson, French President Emmanuel Macron, Canadian Prime Minister Justin Trudeau and German Chancellor Angela Merkel, congratulated Biden and Harris.
Still, Mr. Trump stuck to his claim that he was the winner of the election and continued to accuse the election of fraud, though several of his tweets were tagged with the hashtag “There is controversy over the content of the election.” The leader of Estonia’s far-right party, which has joined The Trump camp, denounced the US election results as rigged and called President-elect Joe Biden “corrupt”.
Lindsey Graham, chairman of the Senate Judiciary Committee, said he would investigate “all credible allegations of voting irregularities and misconduct”, the Hill reported on Saturday. Graham said in a press release that he had received sworn testimony from the Trump campaign from Richard Hopkins, a postal worker in Erie, Pa.
Us media have reported that Donald Trump and his campaign have called on supporters to prepare for protests over what they believe was fraud in the election. The Washington Post reported on November 8 that staunch Allies of Mr Trump had pledged to continue the fight and support the President’s actions.
Us first lady Melania Trump and Donald Trump’s top adviser Jared Kushner have advised Donald Trump to accept defeat on November 8, CNN reported, citing sources familiar with the matter. In response, A spokesman for The Trump campaign, Mike Miller, said the information was untrue.
On the night of November 7 local time, Mr Trump tweeted, quoting legal scholars, that “we have seen many sworn testimony that there was election fraud”.
This week’s bullish sentiment for gold has been strong
Spot gold ended last week up $72.07, or 3.84 percent, as a weaker dollar and biden’s chances of winning the U.S. presidential election boosted hopes for a larger coronavirus rescue bill. Spot gold closed Friday at $1950.86 an ounce.
In Asian trading on Monday, spot gold extended its rally, touching as high as $19,999.84 an ounce.
The price of gold fell back on Friday after Economies.com wrote that it was close to our waiting target of $1967.90 an ounce. Gold is now on track to resume its rally and test $1967.90 an ounce. Continue to predict a bullish trend for gold prices in the short term. Maintaining gold above $1,934.86 an ounce is important for continued bullish expectations.
The FX168 weekly financial Market survey, released on Saturday, showed analysts and traders were mostly bullish on the outlook for gold this week. Among traders and analysts surveyed weekly by financial markets, 75 per cent are bullish on gold and 25 per cent are bearish.
“Gold has really been following the dollar, the novel Coronavirus crisis and the excitement story,” Afshin Nabavi, vice President of precious metals trader MKS SA, told Kitco News on Friday. There has been a flight to safety.” On the back of a second wave of novel Coronavirus infections, with all these election uncertainties, gold could recover to the $2,000 level this week, Nabavi said.
Nabavi warned that more news of lawsuits and recounts could destabilize the market this week. “I expect Trump to be very resistant, even if the election goes the other way. It could be a bit of a mess, but it would also help gold go higher.”
Bullish sentiment among Wall Street analysts reached an all-time high, according to Kitco News’ Weekly Golden Week survey released on Friday. Fifteen professional analysts responded to the survey last week. A total of 14 analysts, or 93%, expect gold to rise this week; Meanwhile, one analyst (7 per cent) expects gold prices to fall; No analysts are neutral on gold this week.
Jim Wyckoff, senior analyst at Kitco Metals, said: “The market is pricing in a Biden victory, which will lead to more government stimulus, which could trigger some problematic price inflation in the future and depress the value of the dollar. The fall in the dollar pushed gold to a six-week high and there was some safe-haven demand amid uncertainty over the presidential election and rising coVID-19 cases.”
“The election of Joe Biden means there will be more stimulus,” said Charlie Nedoss, senior market strategist at LaSalle Futures Group in Chicago. It’s only a matter of degree. That would be bad for the dollar and would support gold higher.”
Ole Hansen, head of commodities strategy at Saxo Bank, said he was also looking at the dollar. Hansen said he is bearish on the dollar because he expects the Federal Reserve to take more stimulus measures to support the economy. He added that the United States was facing a leadership vacuum as the outcome of the election remained uncertain.
Hansen said: “Although the election is over, the virus is not. “The market is looking at leadership changes and support for the economy and they are turning to the Fed and that will lead to a weaker dollar.”
The global epidemic continues to grow. According to the latest world Real-time Statistics from Worldometers, the cumulative number of confirmed cases of COVID-19 globally has exceeded 50.72 million. Nine countries — the United States, India, Brazil, France, Russia, Spain, Argentina, The United Kingdom and Colombia — now have more than 1 million cumulative confirmed cases. The United States, Brazil and India are the three countries with more than 100,000 cumulative deaths.
Recently, the US has experienced a severe rebound from the epidemic, with the number of new confirmed cases, the number of hospitalized cases, the positive rate of virus detection and other important indicators constantly setting new records. In the United States, there have been more than 10.28 million confirmed cases of COVID-19 and more than 243,000 deaths. Experts warned that the number of new single-day diagnoses in the United States could continue to climb in the coming weeks, and urged individuals and governments to take more drastic measures to slow the spread of the disease.
Colin Cieszynski, the chief economist at SIA Wealth Management, expects gold prices to continue to rise as central Banks around the world continue to print money.