Listen to the latest market mood for the XAUUSD.
After the sad death of Supreme Court Associate Justice Ginsberg another battlefront has opened up in the US elections. The election is already likely to be highly charged and the tensions involved in the appointment of a new judge will open up fresh battle lines between Democrats and Republicans.
Furthermore, this makes less space for any agreement on the next stimulus bill package and could give another reason for dollar selling which supports gold. This is on top of the other positive reasons for gold buyers: The Federal Reserve kept interest rates unchanged near zero at their last rate meeting and indicated that they would stay there for at least three years.
Secondly, Gold backed ETFs and similar products recorded their ninth consecutive month of inflows in August.
Thirdly, the bank of England showed a willingness to move towards negative interest rate rates and money markets now have them moving negative in February 2021. In a low interest rate world, gold should benefit.
- USD strength on a US economic recovery
- General USD strength