On Wednesday, the precious yellow metal gold futures’ prices fell as investors’ bet that the Democrats could take hold of the US Senate in an excruciatingly close US election had lashed out hopes of a larger stimulus package in a near-term outlook after voting counts had unveiled that the Republicans would be retaining the Senate, pointing towards a divided Government landscape.
In point of fact, gold futures’ prices fell as much as 1 per cent earlier in the Asia-Pacific trading hours as American Dollar seemed to be regaining its safe-haven bid after the US President Donald Trump had falsely claimed victory in a fiercely contested Presidential race.
Besides, in the later part of the day, as voting counts revealed that the Republicans were going to retain the US Senate, gold wrapped up the day lower, though a late-swing in the presidential race in favour of Democratic challenger Joe Biden in the early US trading hours had kept a lid on the falls.
Gold falls as Republicans retain US Senate
If truth is to be told, Biden was expected to announce a large upsum in stimulus in order to ease off the fiscal fallouts of the pandemic outbreak, though a Republican majority in the US Senate would likely to make it harder to squeeze a larger pandemic stimulus bill.
Nonetheless, on late-afternoon US trading hour, as there had been a slight edge to Biden victory, US Dollar pared its earlier gains and gold futures’ prices had regained some of its footings lost earlier in the session.
Citing statistics, on Wednesday’s commodity market wind down, the spot gold futures’ prices plunged 0.7 per cent to $1,896.02 an ounce, while the US gold futures wrapped up the day 0.7 per cent down to $1,896.20 per ounce.
Meanwhile, referring to the election associated impasse, a head of commodity strategist at TD Securities, Bart Melek said on the day’s Commodity market closure, “It’s becoming quite expected that the senate is not going to shift towards the democrats and now that we’re realistically in a divided government scenario, we’re unlikely to get the same type of stimulus that the market was hoping for”.