UNITED STATES November 08 2016 9:21 AM
NEW YORK (Scrap Register): US Presidential election will be an important focus and will certainly have a significant impact on gold prices, especially given the deterioration in risk appetite seen last week.
Democrat contender Clinton has been seen as the candidate more likely to maintain stability in a macro context and markets had been relatively sanguine over the outcome with an assumption of a relatively comfortable victory. If it so then we can see again drop in the Gold prices which can see support near to 1236$-1220$ level again.
While the dynamics changed as opinion polls showed a tightening race after a re-opening of the e-mail investigation, with Republican Trump making some headway.
In this environment, there was a much less comfortable tone surrounding risk appetite with gold seen as a beneficiary as equities came under sustained pressure. If Trump continues its lead then Gold prices can see good buying for a jump till 1370$-1400$ level.
Meanwhile domestic Gold prices once again landed in discount of $4 against LBMA after Diwali festival but still hopes are high for demand improvement ahead of key marriage season.