Gold surges, US dollar slumps as Trump leads polls

The spot gold price surged during Asian trading hours on Wednesday November 9 as latest poll results show Donald Trump leading in the US presidential election while vote counting is under way.

The spot gold price was recently quoted at $1,303.80/1,304.20 per oz, up $30.55 on the previous close. Trade has ranged from $1,268.95 to $1,313.15 so far.

Sentiment had been positive and markets had been positioning for a Hillary Clinton victory up till this morning. But the US dollar started to collapse and the spot gold price surged after latest polls showed Trump overtaking Clinton. Clinton has 104 and Trump 137 electoral votes as at 21:46 EST, November 8.

“The market this week is pricing back toward a Clinton win, in which case it could be the calm before the calm, and if Trump wins, then risk-off will likely very quickly ensure in knee-jerk fashion,” National Australia Bank said on Wednesday morning.

So far 25 states have been called with 25 more to go – Trump leading 15 states to Clinton’s ten as at 21:41 EST November 8 and 10:41 SGT November 9.

But states like Ohio, Florida, North Carolina, Pennsylvania, New Hampshire and Virginia are states that could be vital in deciding which candidate wins the presidency.

The US dollar has slumped 1.05% to 96.86 so far on Wednesday.

In Chinese data released this morning, Chinese consumer price index rose 2.1% in October, in line with forecast of 2.1% and September’s reading of 1.9%.

China’s producer price index increased 1.2% in October, better than consensus of a 0.9% and September’s reading of 0.1%. The positive growth in September had ended 54 straight months of negative growths for Chinese PPI since March 2012.

In other commodities, the Brent crude oil spot price fell 1.81% to $44.97 per barrel, and the Texas light sweet crude oil spot price slipped 2.63% to $43.67 recently on Wednesday.

In equities, the Shanghai Composite is so far down 0.76% to 3,123.95 on Wednesday.

In the other precious metals, the spot silver price rose $0.215 to $18.52/18.56 per oz. Platinum at $1,003/1,009 per oz was up $7 while palladium was unchanged at $660/665 per oz.

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from The Bullion Desk https://www.bulliondesk.com/gold-news/asia-gold-gold-surges-us-dollar-slumps-as-trump-leads-polls-123571/
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