Thursday’s growth of gold in Asia as it is becoming increasingly likely that Joe Biden will become the next US president. Gold futures rose 1.22% to $ 1925.
Investors in Asia were focusing on the US election on Thursday morning, watching the election much more tighter than expected. According to Bloomberg, Democrat Joe Biden currently has 264 of the 270 votes needed. However, the remaining six votes must come from countries where the results are very close so far.
The expected result of Joe Biden’s win is a boost in the price of gold. The Democratic President is expected to push for a major COVID-19 stimulus package that will push gold values higher. However, sentiment was hampered by the failure of the so-called “democratic blue wave”. This means that there will probably be no democratic control over the House, Congress and the President. Thus, the stimulus package is less likely to be as large as expected.
President Donald Trump is seeking to challenge the results in the states where he narrowly lost, leading to further confusion over the results and the prospect of a recalculation process.
Investors, meanwhile, are waiting for monetary policy decisions from the Federal Reserve and the Bank of England to be taken later in the day.
Source: Investing.com, WebTrader