Business

Gold falls as it set for best week in more than 3 months

06 Nov 2020

Picture used for illustrative purpose. File

GulfToday Report

Gold slumped on Friday, it has been ready for its best week since late July, clinging to the hope for more central bank economic support if Joe Biden becomes president.

Spot gold fell 0.5% to $1,939.10 per ounce by 06:18 GMT. Prices climbed 2.4% on Thursday on a dollar slide, setting them up for a 3.2% weekly gain. US gold futures dropped 0.3% to $1,940.20 per ounce.

According to Kyle Rodda, IG Markets analyst, once the election is over, the price of gold would go back to being determined by fiscal policy.

Votes are still being counted in key states but Democrat Joe Biden remains in the lead.

European, Asian shares advance as investors await result of the US presidential election

World markets and bonds soar as Biden inches towards victory

He added that the US election outcome will likely be a Democrat President and Republican Senate. That will maintain the status quo on policy and allow markets to get back to the real issue of 2020 - central bank easing on a huge scale.

Near-zero interest rates amid massive pandemic-driven stimulus globally have helped non-yielding gold, considered an inflation hedge, gain over 27% this year.

Silver fell 0.9% to $25.10 an ounce. Platinum was little changed at $892.46, while palladium gained 0.7% to $2,392.65.