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Gold Up on U.S. Stimulus Hopes After Democrat Election Win

·2 min read

By Adam Claringbull

Investing.com – Gold was up on Monday morning in Asia as the results from the U.S. presidential election confirmed a Democrat win. A weaker dollar pushed gold prices up over the weekend.

Gold futures were up 0.69% at $1,965.15 by 12:28 PM ET (4:28 AM GMT). The dollar was down on Monday.

Democrat Joe Biden has won the U.S. presidential election, although the U.S. Senate outcome looks to be deadlocked. Markets anticipate a more generous COVID-19 fiscal relief package in consequence, and a softer central bank approach, leading to a weaker dollar. Gold is traditionally a hedge against inflation and rose strongly on the election news.

Bank of England Governor Andrew Bailey and chief economist Andy Haldane are due to give speeches later in the day, with investors on the lookout for references to negative rates. Across the Atlantic, Dallas Fed President Robert Kaplan is also due to speak later in the day.

The president-elect and his team are reportedly working on a COVID-19 relief package to help tackle the raging coronavirus pandemic. The U.S. became the first country to record more than 10 million cases, with a current weekly average of over 100,000 new cases a day, according to a tally conducted by Reuters. More than 237,000 people have died of the disease in the U.S., with one in 11 of global deaths taking place in the country. The number of global cases has exceeded 50 million as of Nov. 9, according to Johns Hopkins University data.

Also causing a turn to the safe-haven yellow metal are the latest U.S. Department of Labor numbers, including non-farm payrolls and the unemployment rate, which showed that jobs created were at a five-month low and more Americans are working part-time.

Further afield, the U.K. and the E.U. are still battling toward a Brexit deal, with both sides still unable to agree.

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