On Tuesday, the precious safe-haven yellow metal gold futures’ prices soared amid rising uncertainties over the verdict of a fiercely contested US Presidential election which might have ended up in a courtroom battle, if the Democratic challenger Joe Biden is elected, while fears of a plausible chaotic market environment over the coming days had prompted the market participants’ to seek shelter on safe-haven commodities like of spot gold futures.
Aside from that, investors’ predilection for a Biden victory had pummelled the American currency on Tuesday, which in effect had proffered an additional backing for the yellow metal. If truth is to be told, despite Biden’s persistent lead in the national opinion polls, investors’ frets were mounting that the Republican President Donald Trump might denounce the election result citing mismanagements in mail-in voting, while analysts were expecting that Trump would highly likely to push forward an army of lawyers who would be challenging the feasibility of November 3 election, eventually delaying the election verdict alongside a much-needed stimulus for a US economy which had ballooned over the third quarter of the year, largely due to a $3 trillion stimulus package passed in the US Congress in April this year.
Gold gains amid growing grudges over election verdict
Citing statistics, on Tuesday’s commodity market closing bell, the spot gold futures’ prices scheduled to be expired on November 25, gained 0.6 per cent to $1,906.83 per ounce, while the US gold futures’ prices surged as much as 0.8 per cent to round off the day at $1,907.50 an ounce.
Nonetheless, analysts are expecting that an election-led antagonistic market morale might lift the gold futures’ prices above $2000 an ounce in a near-term outlook.
Among other precious metals, silver added 0.7 per cent to $24.21 an ounce and platinum climbed 1.8 per cent to $873.33, while the precious palladium jumped as much as 3.2 per cent to wind up the day at $2,282.76 an ounce.
Meanwhile, since an election verdict could take days due to the delays in counting the ballots amid a chaotic market environment over election related discontents, a founder of Circle Squared Alternative Investment, Jeffrey Sica said on Tuesday’s commodity market wind down, “The sole driver behind gold prices is the high likelihood that there is going to be chaos surrounding the U.S. elections, from the predictions of not having a president by tonight. ”