Despite today’s rise in the USD in the foreign exchange market, the price of the precious metals is also increasing. The results of candidates’ debates on Sunday were better for the Republican candidate Donald Trump than for the democratic candidate, Hillary Clinton. In case of the election of Donald Trump as a President the demand for safe-haven assets will increase, as some economists believe that his actions are difficult to predict.
Spot price of silver has grown by 1% to $17.72 per ounce, the price of platinum has grown by 0.3%, to $971.50 per ounce, while the price of palladium fell by 0.5% to $671.15 per ounce. The price of gold is increasing. Spot price of gold at the beginning of European session was at the level of 1262.00.
It is expected that Donald Trump will adhere to the protectionist economic policy in the United States and cut taxes for the American companies. Hillary Clinton is going to continue soft monetary policy, which can positively affect the American stock market and encourage investors to buy risky assets at current levels, which will cause sales of gold and other precious metals.
Today’s price of gold depends more on the decision of the future President of the United States than on the economic situation in the country.
US labour market data released last Friday was positive, although the data was lower than expected. According to CME Group, after the release of the U.S. labor market data last Friday, probability of the rate hike in December has increased from 63.4% to 65.1%. This fact supports the USD on the currency market, but not the price of the precious metals.
Today’s economic calendar is uneventful, as there is a day off in the US, Canada and Japan.
It is likely that the USD will continue to trade at the current levels or close to them till tomorrow’s Asian session.