Gold price bounces on dollar retreat as markets weigh prospect of Biden win

New York (Nov 5)  Gold jumped to a two-week high on Thursday as the dollar slipped, with investors betting on the likelihood of bigger economic support measures as Joe Biden inches closer to the Oval Office going into the final stretch of the U.S. elections.

Spot gold was up 0.7% to $1,915.56 per ounce at 0927 GMT, having earlier scaled its highest since Oct. 22 at $1,918.81.

U.S. gold futures gained 1.1% to $1,917.30.

Making bullion cheaper for those holding other currencies, the dollar index held close to a one-week trough.

“A Democrat in the White House would lead to a weakening of the dollar because of the additional spending and the nature of the mandates that he would set,” said StoneX analyst Rhona O’Connell.

“The weaker dollar is not necessarily reflecting the loss of confidence or anything, it’s more a question of what the markets would expect from a Biden presidency.”

Reuters