FX.co ★ Investors freeze in anticipation

On September 29, the first debate took place between US President Donald Trump and his opponent Joe Biden. In the debate, Trump announced that he would challenge a possible defeat in the elections scheduled for November 3. He is even ready to appeal to the Supreme Court to announce the final decision.

Investors are following the developments closely and are waiting for both sides to agree on new stimulus measures worth billions of dollars. US Federal Reserve Chairman Jerome Powell said that a political decision is needed to continue the quantitative stimulus program. In other words, Mr. Powell shows that the Fed is independent from political party games. Also, the Fed's monetary policy should not affect Trump's re-election.

Moreover, the previous $3 trillion support program has already ended. A new stimulus package is urgently needed. Otherwise, the US economy will begin to collapse, as it is very dependent on consumption.

Treasury Secretary Steven Mnuchin argues that the program to support the economy should be adopted before the elections. Amid this situation, the S&P 500 index is growing again. Gold is trading mixed, but tends to rise as well. The US national debt is increasing every day which leads to the depreciation of the American currency.

But it seems that it will be difficult for politicians to agree. Republicans rejected the Democratic proposal for a $2.2 trillion stimulus package, as $436 billion of that amount will be allocated for cities ruled by Democrats. Trump cannot let this happen.

The situation in the US Supreme Court is also worth attention. Democratic Supreme Court Justice Ruth Ginsburg has recently died. Trump did not hesitate and, despite the opposition of Democrats, nominated Amy Coney Barrett for this position. This will strengthen the position of the Republicans in the Supreme Court. In case of her approval, Republicans will have six judges in the Supreme Court against three from Democrats. It is now clear why Trump intends to challenge the election results.

What will happen with the gold prices in the future? Gold is currently trading near the high from 2011. Apparently, investors are confident that the program to support the US economy worth billions of dollars will be adopted sooner or later.

In any case, the new US president will still have to accept a program to support the country's economy for several trillion dollars. Biden intends to invest $2 trillion for climate preservation. Trump, in turn, does not intend to reduce the pace of building up the national debt.

This is disastrous for the country. When Trump became president, the US national debt was $20 trillion, but now it has grown to a record $26.8 trillion, which is an incredible 137.5% of the US annual GDP. The mark of $30 trillion public debt is just around the corner.

One thing is clear: printing money will be continued and interest rates will be at their lowest level. This is favorable for gold as the precious metal will continue its upward trend.

However, today the price of gold fell. Gold futures for December dropped by 0.17% to trade at $1,916.75 per troy ounce.

The US Dollar Index, which measures the US dollar against a basket of six major currencies, decreased by 0.10% to settle at 93.448.

The silver price also declined by 0.26% to $24.497 per troy ounce, while copper grew 0.01% to hit $2.9642 per pound.