The yellow metal pushed above $1,930 an ounce to hit the highest level seen in months, aided by a weaker greenback after posting its best annual gain in ten years.
The precious metal recent surge has been triggered by continual declines in U.S. real Treasury yields, which boosted the precious metal attractiveness.
At the time of writing this report, gold futures were trading at $1,937 an ounce printing a gain of $42 per ounce.
Stephen Innes, Chief Global Market Strategist at Axi in a note to Nairametrics spoke on markets sentiments triggering the precious metal prices to swing up;
“With the polls shading to a Democratic sweep such a result guarantees larger stimulus checks will be mailed out forthwith, and massive U.S. infrastructure spending packages get fast-tracked through Congress in Q1. All of which is sending risk sentiment through the roof.
“But a bigger US stimulus boost cannot be good for the U.S. dollar which is already brittle and snapping under the colossal weight of the massive U.S. budget and trade deficits.”
What to expect: Still, the increased US debt load will be music to gold investors’ ears, and the Democratic sweep could offer the ultimate spark to put gold above $2000/0z.