Gold Prices on the Rise Even as Markets Await Georgia Results
Gold prices are climbing higher as the US dollar continues to trade weak while markets cautiously await the results of the Georgia elections
On Wednesday, gold prices are climbing higher as the US dollar continues to trade weak while markets cautiously await the results of the Georgia elections due later today. At the time of writing, GOLD is trading at a little above $1,944.
The latest election results will determine whether Democrats will gain control of the Senate – a majority that will help them pass key legislation that President-elect Joe Biden is planning, including higher taxes and more stimulus for the economy. Early leads in preliminary voting point to possible victory for the Democrat candidates, which further weakened the US dollar and supported the bullish trend in gold.
The near term outlook for gold remains bullish irrespective of the election outcome, as the US dollar is likely to remain weak for some time. While a victory for Democrats could improve the market sentiment, it will keep the dollar under pressure, supporting the yellow metal prices.
Analysts, however, anticipate a slight weakness in gold in case the results go in the favor of Republicans instead. However, prices could recover quickly in the wake of lower interest rates and higher expectations for inflation in the US.
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