(05 November 2020)DAILY MARKET BRIEF 2:Gold is up

(05 November 2020)DAILY MARKET BRIEF 2:Gold is up

5 November 2020, 09:20
Jiming Huang
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n the commodity market, oil prices are retreating after surging about 4% yesterday and gaining over 9% during the last three sessions. Both WTI and Brent are down over 1.80% as Biden is likely to win the US election. This is regarded as a bearish signal for oil markets, as Democrats want to push an energy agenda focused on renewables.
Gold is up on Thursday morning as Biden is closer to the 270 electoral votes needed to secure a victory. The metal is up 0.67% to $1,908. Biden is expected to support a larger COVID relief package, which would support the price of gold.
In FX, the US dollar has lost ground as it becomes clear that Biden will likely become winner, even though Democrats won’t have control over Congress. The USD Index fell 0.06% to 93.352. Some investors expect that Trump’s accusations related to vote counts and the ongoing uncertainty would support the greenback in the short-term. For now, EUR/USD is up 0.17% to 1.1742.
The pound fell 0.20% against the US dollar and 0.40% versus the euro as investors are waiting for Bank of England’s fresh quantitative easing and are preparing for potential negative rates for the first time ever.
By Strategy Desk


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