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Gold Edges Higher As We Await the US Election.

November 2, 2020

Gold was marginally up on Monday morning as Asia opened even with a stronger USD. Investors are concerned of a potential disputed U.S. election, and additional European Coronavirus lockdowns are also driving the safe-haven asset.

The vulnerabilities caused by the U.S. election and the continuing Coronavirus pandemic are driving gold up as traders hedge their bets. The possibility of a contested election, and the lack of a Coronavirus stimulus, supported golds rise, even as the USD also saw some upward movement. The dollar and gold tend to move in an opposite relationship.

Gold was helped by the unrest and turmoil surrounding tomorrow’s U.S. election; the Coronavirus pandemic has impacted the way the state ballot collection systems works and will create a delay in vote counting. There is also the possibility that President Trump may try to claim an early victory without a full vote count, prompting to a contested result and possible civil unrest.

Markets seem to be in a holding pattern as they anticipate an uncertain result, with Democrat challenger Joe Biden currently leading the polls, but with highly contested states too close to call.

The U.S is also witnessing a significant rise in Coronavirus cases, with the daily death rate currently near a 1,000, and 44 of 50 states seeing the numbers of new cases climb. The Coronavirus is now the third cause of deaths in the US, after heart disease and cancer, according to the Centers for Disease Control and Prevention.

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