Gold price falls on increased risk appetite; US election drives sentiment

Gold fell on the morning of Monday, November 7, reflecting a boost in risk appetite in global financial markets that lifted the prices of base metals and oil.

The spot gold price was recently quoted at $1,285.05/1,285.35 per oz, down $18.75 or 1.4% on the previous close. Trade has ranged from $1,283.75 to $1,295.90 so far.

Risky assets have broadly rallied in response to the FBI announcement clearing Hillary Clinton of any offences in her use of a private email server. This may improve the chances of a win for Clinton in tomorrow’s US presidential election.

“If Hillary Clinton were to come out on top, the gold price would probably continue to fall as a Fed rate hike in December would then be fully priced in,” Commerzbank noted.

After falling around 15% last week and bottoming out just above $45 per barrel, spot Brent crude was recently at $46.05 per barrel in London, up around 50 cents.

And on the London Metal Exchange, the base metals were all in positive territory, with three-month copper prices climbing smartly above $5,000 per tonne to their highest since March this year.

Noting good demand for gold at $1,290 and resistance at $1,310-1,315 per oz, MKS said that market participants “continue to look to gold amid the uncertainty in the lead-up to this week’s election and as such downside moves are likely to be well supported”

In the other precious metals, the spot silver price was recently quoted at $18.185/18.205 per oz, down 20 cents. Platinum at $988/994 per oz was $6 lower but palladium gained $3.50 to $622/629 per oz.

(Editing by Mark Shaw)

The post Gold price falls on increased risk appetite; US election drives sentiment appeared first on The Bullion Desk.

from The Bullion Desk http://ift.tt/2fv6xRc
via IFTTT