Gold on the rise with US presidential election

November 07, 2020 | 07:17

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Impacted by the US presidential elections, domestic gold prices have been fluctuating sharply these days.

gold on the rise with us presidential election

Gold is once again on the rise

As of the morning of November 6, the local price of gold increased by VND50,000-100,000 ($2.17-4.34) per tael against the previous day. Over the past two days, the price gained VND400,000 ($17.4) per tael.

Saigon Jewelry Co., Ltd.’s (SJC) price is currently VND56.2-56.7 million ($2,443-2,465) (buy-sell) per tael, up VND150,000 ($6.52) against the previous day. Phu Nhuan Jewelry's (PNJ) price also picked up VND250,000 ($10.87) overnight.

Similarly, global prices are also on the rise. At 9.30 pm on November 11, it reached $1,942 per ounce.

Bloomberg stated that spot gold traded 0.6 per cent at $1,937.69 per ounce at 6.28 am in London. Prices soared as much as 2.6 per cent on November 5, the highest since September 21, while total weekly gained was 3.1 per cent, the largest five-day gain since the five days ending on July 31.

With the concerns about the US presidential elections, gold has once again emerged as a safe investment channel. As a result, the price of gold has gone up recently.

According to Jeffrey Halley, senior analyst at US-based Oanda, the main reason behind the increase is the panic selling of USD currency in the EU. Specifically, the current happenings of the election may lead to some loosening of the Federal Reserve's (Fed) policies and a nosedive in the USD.

Along with the concerns about the US presidential election, the new financial policies of the Fed also fuelled the rebound in global gold prices. Specifically, according to Bloomberg, the authority decided to open the door to a possible shift in the central bank’s bond purchases in the coming months, stipulating that more fiscal and monetary support are needed.

By Van Anh

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