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Gold Flat Amid 2020 US Election Uncertainty, Lower Dollar

November 4, 2020 at 13:19 by Andrew Moran

Gold futures are trading relatively flat in the middle of the trading week following immense volatility in overnight trading. The yellow metal had slumped as much as 1.5% during the evening session, triggered by the uncertainty surrounding the 2020 US presidential election.

December gold futures slipped $0.70, or 0.04%, to $1,908.70 per oucne at 12:00 GMT on Wednesday on the COMEX division of the New York Mercantile Exchange. The yellow metal is up more than 25% year-to-date.

Silver, the sister commodity to gold, is failing to enter green territory midweek. January silver futures fell $0.204, or 0.84%, to $24.13 per ounce. The white metal, which is up 35% so far this year, shared the same noteworthy volatility as its yellow counterpart. At one point, silver prices were down as much as 4%.

The yellow metal had reacted to the changing developments on election night in the US. The evening started off as if it were going to deliver a victory before the vote counting stopped in several key battleground states. The situation intensified when President Donald Trump prematurely declared himself the winner and threatened to take his case to the Supreme Court.

This is a fraud on the American public. This is an embarrassment on our country.

We were getting ready to win the election, frankly, we did win this election. We’ll be going to the US Supreme Court. We want all voting to stop. We don’t want them to find any ballots at 4:00 in the morning and add them to the list.

It’s a very sad moment. To me, this is a very sad moment, and we will win this. As far as I’m concerned, we already have won it.

At the time of this writing, the Electoral College leaderboard is leaning toward former Vice President Joe Biden, with 238 votes. President Trump maintains 213. But election observers are paying attention to places like Pennsylvania, Wisconsin, Nevada, and Georgia, where the president holds considerable leads.

It is unclear what will transpire on Wednesday and throughout the rest of the week, resulting in uncertainty in the gold trade, which is evident by the yellow metal’s lackluster performance in the morning session.

A weaker greenback supported gold prices as the US Dollar Index, a measurement of the greenback against a basket of currencies, slipped 0.16% to 93.40, from an opening of 93.55. A lower buck, which had surged as much as 0.55% in overnight trading, is good for dollar-denominated commodities because it makes it cheaper for foreign investors to purchase.

In other metal markets, December copper futures dipped $0.004, or 0.13%, to $3.0965 per pound. December platinum futures slid $0.80, or 0.09%, to $874.20 an ounce. December palladium futures shed $7.70, or 0.34%, to $2,291.80 per ounce.

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