On Wednesday (November 18) in the Asian session, the DOLLAR index was little changed, now at around 92.50. Spot gold was also stable, trading around $1, 878 an ounce. Analysts said that while gold had come under some downward pressure from this week’s positive news on the coronavirus vaccine, it was supported by expectations of more stimulus from the U.S. government to boost the economy, and uncertainty over the U.S. election was also key to gold’s stability. President Donald Trump has fired the head of the Cyber Security Agency in charge of election security. A recount in the US state of Georgia found 2,755 uncounted votes in one county. Investors will remain focused in the short term on coVID-19 and election news, as well as on the dollar, with gold poised for a rebound and bulls targeting the $1,900 / oz level in the short term should the dollar show signs of weakness.
A recount is under way in Georgia, and the office of Georgia’s secretary of state, Brad Raffensperger, said on Tuesday that a batch of ballots that had not previously been counted had been found in another county in the state.
Gabriel Sterling, a senior official in the office of the Secretary of State, said an unuploaded memory card was found in Fayette County, south of Atlanta, during a presidential vote count. The 2,755 votes on this memory card are not enough to turn the state around, with the current count showing Democrat Joe Biden ahead of Republican President Donald Trump. Sterling said 1,577 votes were counted for Trump, 1,128 for Biden, 43 for The Libertarian Jorgenson, and seven for non-candidates.
Election officials said Monday that a recount in Floyd County, Georgia, found more than 2,600 uncounted ballots. Georgia secretary of State Brad Raffensperger said the problem came from election officials in Floyd County who failed to upload the data from the vote-scanner memory CARDS.
Nearly five million ballots were cast in Georgia, and thousands of people in 159 counties were manually counted. The process will be completed by midnight local time on November 18th. Based on unofficial results, several U.S. media outlets are predicting Biden will win the state by more than 13,000 votes.
US President Donald Trump announced on Twitter on November 17 that Chris Krebs, director of the Cybersecurity agency, has been removed from his post, effective immediately. Mr. Krebs had earlier denied Mr. Trump’s allegations of voter fraud.
Mr Trump announced the decision in two tweets. In a tweet, he repeated earlier allegations that the election was rigged and rigged.
Trump pushed wrote: “Chris Krebs recently released about 2020 election declaration is not accurate, because there are many inappropriate means and in the presidential election fraud, including” the deceased “vote, election observers are not allowed to enter the voting place, ‘fault’ voting machines will trump’s votes to biden’s votes, such as delay to vote more problems. As a result, Chris Krebs, director of the Cybersecurity and Infrastructure Security Administration, is being relieved of his duties, effective immediately.”
Chris Krebs is one of the most important national security officials in the United States, overseeing the security and progress of the presidential election. Mr Krebs said on November 17th that Mr Trump’s claims about electoral fraud were “baseless and illogical”.
In other election news, the Pennsylvania Supreme Court on Tuesday dismissed a lawsuit brought by the Trump campaign. The Trump campaign says Republican election observers have been improperly denied access to Philadelphia to closely observe the vote count. The defeat could undermine the Trump campaign’s legal efforts in the Williamsport federal court, where it is trying to prevent Pennsylvania from certifying its election results in the coming weeks.
Senate Majority Leader Mitch McConnell vowed on Tuesday that the upcoming presidential transition will be an “orderly transfer of power,” Politico reported. Mr. McConnell was asked at the news conference why the GSA had been slow to start the formal transition process. He replied that legal cases relating to the elections must first be resolved, but vowed that “all this will happen in time for the next government to be sworn in on January 20.”
“Once those certificates are available, if they are available, that will be final, based on the lawsuits that are going on in different places,” said McConnell. The electoral College will meet in December. The inauguration will take place on January 20.”
Gold stuck in a narrow range in the afternoon is still likely to strengthen
The results of the US presidential election are still in the balance. A number of US media announced that The Democratic presidential candidate Joe Biden won the 2020 election, but the current President Donald Trump has still not accepted the election results and has filed a number of lawsuits. Uncertainty over the outcome of the US election helped boost safe-haven demand for gold.
Gold prices took a hit earlier in the week when drugmaker Moderna became the second US drug company in a week to report positive trial results for coVID-19 vaccines. However, concerns about the rise in novel Coronavirus cases and their economic impact were balanced by optimism about covid-19 vaccines, keeping gold prices in a tight range for now.
Bart Melek, head of commodities strategy at TD Securities, said: “Vaccines are very, very good news, but the problem is that even in developed countries it takes quite a long time to deploy vaccines. With or without a vaccine, the economy will struggle until the third quarter of next year. “We need a lot of monetary stimulus and we are likely to have fiscal stimulus, which should ultimately help bring inflation closer to target.”
Edward Moya, senior market analyst at OANDA, noted, “The key issue remains the novel Coronavirus and the short-term stress it will bring not only to the United States but also abroad. That would force Congress or the Fed to do more. Whether we do stimulus after Joe Biden or whether the Fed does more, the direction of the dollar is very clear: it’s going to be much lower.”
Fed Chairman Colin Powell said Tuesday the central bank is committed to “using all of our tools to support the recovery until the job is really done.” He was speaking at a virtual event hosted by California’s Bay Area Council.
“Gold is stuck in a range,” says Phillip Streible, chief market strategist at Blue Line Futures in Chicago. Gains are limited, with $1,900 as key resistance and $1,850 as key support.” He added that gold would continue to be supported because “everyone thinks inflation is going to pick up next year and the Fed is not going to do anything about it”.
Craig Erlam, senior market analyst at Oanda, said the recent weakness in the dollar had provided some support for gold, but the metal was still struggling to come off its lows and, although it could find support in the $1,850 to $1,860 range, it would be difficult to break through the $1,900 level.
Stephen Innes, chief global market strategist at Axi, a financial-services firm, said on Wednesday that gold was in the middle of a mismatch between a surge in coVID-19 cases and good vaccine progress, and the Asian market was stable in early trading on Wednesday. Gold still faces headwinds to continue its rally, supported by factors such as financial sector fragility and the federal Reserve’s current policies.
Gold prices continue to move in a consolidation range, according to Economies.com. It is worth noting that gold prices are slightly bearish and investors need to be wary of afternoon trading. Gold needs to consolidate back above $1,890.00 / oz for the bullish scenario to continue. Waiting for gold to break above $1901.80 an ounce opens the way for further gains to the next bullish target of $1934.86 an ounce.