This article was first published on Orbex Forex Trading Blog.
This content is synced from the rightful owners. Copyright on text and images belong to the original source.
Gold Surges to 5-Week High
Gold rose this week after seeing its biggest gain in 5 weeks. The price of the precious metal reached a high of $1953 for the week ending November 6.
However, the price action appeared to be a reflection of the current election count dynamics.
For one, a Biden win and a divided Congress will certainly keep investors on their toes. Democrats will not be able to pass legislation through Congress without facing Republicans’ resistance. (A Trump win, on the other hand, might trigger a sell-off as market participants could turn to USD for safety).
Secondly, growing prospects to halt vote counts are making investors nervous. Trump said he will bring lawsuits in Pennsylvania, Michigan, and Georgia and will request recounts in other states.
Despite gold currently trading mainly based on hopes of a Democratic challenger win, prices could see an acceleration if the US Supreme Court decides to get involved. So far, the Supreme Court has rejected any legal challeng...
To keep reading this article, please navigate to: Orbex Forex Trading Blog.