Gold gains were diminishing on Wednesday in Asian session as the dollar firmed with investors tracking two closely contested U.S. Senate runoff races in Georgia that will likely determine President-elect Joe Biden administration’s fiscal policy. U.S. gold futures eased 0.4% & were trading on $1,948.5 per ounce at 1210 HRS PKT, while the dollar rebounded from multi-year lows.
If President-elect Joe Biden’s razor-thin lead in Georgia holds, 2020 will become the first year since 1992 that a Democrat wins the state. Biden leads President Trump by about 10,000 votes out of 5 million cast, and Georgia state officials said Friday that such a narrow margin makes a recount all but certain. Both Democrats and Republicans are campaigning heavily in Georgia, once a solidly Republican state, which emerged as a battle ground in the 2020 election. Opinion polls have the Senate runoffs neck-and-neck.
Polls closed in Georgia’s dual runoff elections that will determine both control of the U.S. Senate and Biden’s ability to push through an ambitious legislative agenda. An Edison exit poll showed voters were evenly split on which party should control the Senate. The outcome may remain in doubt for days if the margins are razor-thin.
According to Financial Analyst at HG Markets : “We can have a little bit of a slide lower if we get a Republican majority but ultimately the bid side of gold remains pretty much entrenched on the forward looking inflation & economic shrinkage narrative. Gold still has pretty much chance to reach $2,000 per ounce.”
Meanwhile, minutes of the U.S. Federal Reserve’s Dec. 15-16 policy meeting are scheduled for release today at 0000 HRS PKT. The Fed might decide to unleash more monetary stimulus once it has a clearer picture on how the U.S. Congress turns out.
Silver is the most electronically conductive metal of all & also the most thermally conductive therefore new strain of COVID19 can create a hard hit to metal’s industrial usage. Silver shed 1.1% & is trading at $27.49 an ounce 1210 HRS PKT