Gold soared to a one-month high of rising expectations that Democrat Joe Biden would win the U.S. election, opening up opportunities for greater stimulus measures.
The precious metal soared to $ 1,952 in the New York session before declining slightly in the Asian session. However, it is seen continuing to increase at the beginning of the European session by rising around the price of $ 1,940 per ounce while gold futures traded at $ 1,941 per ounce.
However, there are recent concerns about possible divisions in Congress.
Election results so far show that Republican parties are more likely to dominate the Senate, and this puts Democrats facing a major challenge to implement changes in formulating fiscal policy if Joe Biden wins this election.
This includes reducing the chances of approving a larger stimulus measure from Congress despite the Covid-19 pandemic continuing to threaten the country’s economy.
Meanwhile, the results of the November session of the FOMC policy meeting saw the US Federal Reserve (Fed) maintain interest rates at the target range of 0-0.25% as expected widely once again reiterating their commitment to use various tools to support the US economy.
