The price of gold skyrocketed Thursday morning, allowing it to surpass the strategically important mark of $1,900 per troy ounce. The main reason for the growth is associated with the expectations of market participants on the results of the US presidential elections. Most of all, investors are determined to win the main rival of Donald Trump - Joe Biden.
Gold futures contracts for December delivery on the electronic trading platform in New York rose 0.63% or $ 11.85, which sent it to $1,908.05 per troy ounce. The support level was $1,863.3 per Troy ounce and the resistance moved to the area of $1,917.9.
Silver futures contracts for December delivery also gained 1.02% pushing the price up to $24.137 per troy ounce.
All market participants' attention is now focused on the counting of votes after the presidential elections in the US. Of particular interest to investors are states where the results have not yet been announced. According to preliminary data, Joe Biden is currently leading the race, however, in order to finally establish himself in the presidency, he needs to gain six more electoral votes.
Meanwhile, most analysts no longer even doubt that the victory will be on the side of Joe Biden. In this regard, they again started talking about what to expect after his inauguration. Experts believe that he will take more significant measures to support the country's economy than Trump did before him. Democrats have always been on the side of maximum financial stimulus.
Of course, such a turn of events will only play into the hands of the precious metals market, which will continue its significant growth, as analysts said in their preliminary forecasts. Biden's victory will mean an early ratification of the financial stimulus program, which in turn will have a positive effect on gold, which will act as additional insurance against possible changes in the inflation rate in the country.
In addition, an important event for the precious metals market will be the meeting of the US Federal Reserve System, which this time lasted longer than usual - two whole days. Most experts believe that the base interest rate will remain at the same level in the range from 0 to 0.25% per annum.
At the same time, the main regulator of Great Britain, whose activities are also closely watched by investors, also sums up the results on Thursday. According to analysts, a decision should be made to strengthen quantitative easing, since, against the backdrop of the coronavirus pandemic, the country's economy is facing more serious problems than previously thought.
A scenario like this would once again make gold a favorite in the market, and its value will skyrocket since there are practically no restrictions on this. It is quite possible that the precious metal will be able, if not to break through the next strategically important mark, then come close to it. Note that it is located at the level of $2,000 per troy ounce.
Copper futures for December delivery rose 0.16% which sent it to $3.1092 per pound.
