SMM: gold prices rose in New York on Monday, with spot gold rising more than 1% to a new high of $1882.98 / oz since Sept. 23, rising more than $34 from a daily low, as the dollar fell sharply from a two-month high before this week's US presidential debate, although the sharp rise in stock markets in Europe and the United States limited the rise in gold prices.
The dollar index fell 0.45% to 94.15, the lowest in nearly three trading days. COMEX December gold futures closed up 0.9% at $1882.30 an ounce. "with the weakening of the dollar and slightly lower real interest rates, gold has begun to recover its lost ground," said Suki Cooper, an analyst at Standard Chartered Bank (Standard Chartered).
Jim Wyckoff, senior analyst at Kitco.com, said: "risk aversion among traders and investors has declined, but as the presidential election in early November approaches, they know that many markets will fluctuate sharply in the next six weeks. If US President Donald Trump loses the election, many people worry about whether he will transfer power peacefully. " In addition, Jim Wyckoff said that the outbreak of coronavirus is still surging in many countries, the Brexit incident resulted in no agreement between Britain and the European Union, and relations between the United States and Asia remain tense, all of which add to the uncertainties currently facing the market.
Peter Hug, global head of trading at Kitco, said that as the US election, the epidemic and the US economic recovery all meant a lot of uncertainty, investors were likely to stay on the sidelines before the election, so the whole market was full of liquidity. Investors are becoming more and more nervous throughout the market. Hug believes that with the election approaching and the United States may have a second round of epidemic, the stock market is under pressure and the whole market may be a mess. Many investors take profits in the stock and gold markets, and when they become more nervous, the natural reaction is to leave the market and hold the currency.
Hug pointed out that gold at $1850 an ounce has strong support, but if it falls below that level, then it looks like 1820 support. Above, the resistance level first looks at $1875 and then $1900 / oz. If the stock market stabilizes or even goes higher, gold will test $1900 an ounce upwards; if gold falls below $200, that doesn't mean the bullish trend is over. Even if the US election is basically normal, the Fed will not raise interest rates until 2023, while the ECB will inject more liquidity and remain bullish on gold.
