- Gold buyers eye breaking the monotony around $1,900 while extending recent pullback from $1,893.
- Joe Biden wins Michigan, has 264 votes versus 270 required.
- Ballot counting in Pennsylvania gains major attention, BOE and FOMC are additional catalysts worth watching.
Gold prices fade the recent uptick to $1,906 while easing to $1,904.50 during the pre-Tokyo open trading on Thursday. The yellow metal refreshed the two-week high the previous day but had to end the day with negligible losses as US election updates dim odds of the blue wave. However, the latest rise in the bullion could be attributed to the risk-positive news suggesting the Democratic candidate Joe Biden’s victory in Michigan.
Having secured a lead in Michigan, Biden has 264 electoral votes in his pocket versus nearly 215 counts by the current President Donald Trump. However, the key state Pennsylvania is yet to roll out the counts amid controversy over the ballots. While the Pennsylvanian Governor Tom Wolf strongly resist any efforts to shut down vote counting, the actual results are likely to take beyond Friday.
Elsewhere, Italy announces lockdown in Lombardy, including the financial capital Milan, to tame the coronavirus (COVID-19) wave 2.0. As per the latest virus update from Reuters, “Italy saw 352 COVID-related deaths on Wednesday after registering 353 the day before, the health ministry reported earlier, while the daily tally of new infections rose to 30,550 from 28,244.”
Against this backdrop, S&P 500 Futures drop 0.27% whereas the US 10-year Treasury yields also stay weaker below 0.80% by press time.
Although the US election updates will keep the driver’s seat, with Democratic victory likely benefiting the gold buyers, key monetary policy meeting from the US and the UK central banks will also be important to watch. While the Fed is less likely to offer any fresh moves, the BOE is up for a controversial rate cut to the negative zone.
Technical analysis
A falling trend line from September 01, currently around $1,912, becomes immediate key resistance. Alternatively, bears refrain from entries unless witnessing a clear break below the previous month’s low of $1,860.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.