Gold dips as investors await US election outcome

On Tuesday morning, the gold price is almost unchanged-investors prefer to abandon active trading, waiting for news from the US presidential election, Report says, citing the auction data.

As of 9.21 am (Baku time), the December gold futures price on the New York Comex exchange symbolically increased by 0.02%, or 0.45 us dollars, to 1,892.95 US dollars per Troy ounce. December silver futures rose 0.5% to $ 24.152 an ounce.

On Tuesday, traders remained cautious in anticipation of news from the polling stations in the United States. Rivals in the presidential election are the White House'sHouse's current head, Republican Donald Trump, and Democrat Joe Biden.

Traders are concerned that determining the winner may be delayed indefinitely.

"Sentiment is hanging by a thread at the moment... Everybody is quite unsure where the election is headed to, given the number of possible outcomes," said Howie Lee, an economist at OCBC Bank."
As long as there isn't a Democrat sweep, there will be questions on fiscal stimulus, while an uncertain or contested result will likely favor the dollar and weaken gold, he added.

ED&F Man Capital Markets analyst Edward Meir, in turn, noted that the lack of new financial incentives for the US economy also puts pressure on gold. If Trump is re-elected, the adoption of a new stimulus package may be delayed.