Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 0.7% to close under $1,897 after the divided results of the US elections increased risk appetite and undercut demand for alternative assets.

After one of the most contentious elections in memory, and with several key races yet to be determined, the results point to a split decision. While the Senate appears likely to stay in Republican control, the White House is tilting slightly toward the Democrats.

Wall Street surged on prospect of divided government, with the Dow adding 1.5% while the S&P 500 and Nasdaq jumped 2.4% and 3.8%. With neither party receiving a clear mandate from voters, traders speculated that substantial changes in business-friendly tax laws and regulations are now less likely.

Gold rallied in recent sessions behind expectations that a so-called Blue Wave of Democrat wins would mean massive stimulus spending on COVID relief and infrastructure, adding to US deficits and increasing the risk of higher long-term inflation. Stimulus spending is still likely but now on a smaller scale.

The metal bounced off session lows around $1,882 on some downbeat US economic data. ADP reported private sector hiring slowed far more than expected, with 365,000 jobs created, far below forecasts of 600,000.

Separately, the services sector grew more slowly in September, according the ISM survey, as rising coronavirus cases pressured the hospitality and entertainment industries.

The other precious metals were mixed, with silver and platinum dropping 1.8% and 0.6%, respectively, while palladium added 0.4%.

At the Comex close: December gold dropped $14.20 to $1,896.20; December silver fell 44 cents to $23.89; January platinum slid $4.90 to $870.10; and December palladium added $9.80, to $2,307.60 an ounce.