Gold prices were all fired up at the first trading session of the week in London – triggered up momentarily by results from the U.S. presidential election affirming a Joe Biden win and coupled with a weaker dollar.
At the time of writing this report, Gold futures gained over 0.56% and trading at $1,962.15/ounce, as gold bulls took the hold of the price bandwagon at record levels.
Why are Gold prices up?
Gold traders are going long on the recent macro coming from the U.S election results printing a Democrat Joe Biden win. Although the U.S. Senate outcome still looks undecided, traders are anticipating more stimulus packages under a blue party in power, and a more dovish central bank approach, leading the greenback continual fall to record lows.
What they are saying
Stephen Innes, Chief Global Market Strategist at Axi, in an explanatory note to Nairametrics, spoke on the key political macros traders would be keenly be watching in the future,
“Pricing out of global geopolitical risk under a Biden presidency could be the most undervalued plus of them all, as global supply chains could then redistribute goods in a more globalized fashion and could even return to the pre-pandemic status in the next 12- 24 months if a vaccine proves to be the ultimate recession stopper and a game-changing panacea for global growth.”
What this means
Global investors use the precious metal to hedge against inflation and for wealth preservation against the tumbling value of fiat currencies. So, it was unsurprising to see the yellow metal rising up to this occasion.