2016-11-10 11:52:01

Yesterday’s high volatility caused by Presidential election in the United States has affected the prices of the precious metals. Yesterday, the price of gold has soared up by 5% or by $62 per ounce after the first announcement of Trump’s victory. Yesterday’s highs in the pair XAU/USD was $1337.00 per ounce of gold. However, last night the price of gold begun to decline and reached the level of 1279.00.
Yesterday’s closing price of December gold futures at COMEX has dropped by 0.1% to the level of 1273.50 USD per Troy ounce. While earlier on Wednesday, the price hit the highs of $1307.50 per ounce.

As soon as the final results of the election became known and Trump became the 45th President of the United States, market participants risk appetite has increased again. Stock markets went up and the USD has regained almost all losses.

The rise in the USD puts pressure on gold. The index WSJ, which tracks positions of the USD against a basket of the other currencies, has grown by 0.7% to 88.66%. The rise in the American currency has a negative impact on the price of gold futures, as price for this precious metal is denominated in the USD.

However, uncertainty about the prospects for economy and politics after Trump’s victory may change the plan of the US Fed to raise interest rate in December. If this plan is postponed, the USD will drop in the foreign exchange market, while the price of gold will grow again.

Today, the correction is undergoing in the currency market after yesterday's volatility. At the end of the day there will be plenty of news releases. However, attention shall be focused on the US news, which can increase volatility in the foreign exchange market.

At 16:30 (GMT+3) - the number of initial applications for unemployment benefits in the U.S. for the last week will become known. If the result exceeds expectations, it will have a negative impact on the US dollar. Previous index was at the level of 265 000. The forecast is 260 000.
At 22:00 - monthly report on the US budget in October will be released.

XAU/USD