FX.co ★ Precious metals market froze in anticipation of US presidential election results

The price of gold remains almost unchanged Tuesday morning. Investors froze in anticipation of the outcome of the US presidential elections. There is no activity in trading, instead, traders are on standby for news that will signal their next step.

Gold's futures contracts for December delivery on the trading floor in New York slightly added 0.02% or $0.45, which sent it to $1,892.95 per troy ounce. Silver futures contracts for December delivery also rose 0.5% which sent it to the price level of $24.152 per troy ounce.

Voting in the US already began on Tuesday morning. The two main candidates - Donald Trump and Joe Biden – have been fighting for voter sympathy over the past months. According to the survey, Joe Biden gained more supporters, but the situation in some states remains uncertain. This is what causes serious concern for traders, who fear that the counting of votes and the announcement of results may be delayed for a long period. In addition, possible disputes and conflicts will exert significant pressure, including on the precious metals market.

The mood of market participants is still rather restrained, although everyone understands that any negative will trigger a chain reaction that will inevitably gain momentum. Still, the uncertainty in the election campaign plays into the hands of the USD, which is trying with all its might to strengthen at present. This, in turn, has a negative impact on gold, which, on the contrary, may show negative dynamics. However, it is too early to talk about it, because there were no clear signals for that yet.

In addition, the issue of a new financial stimulus program in the US, which has not been resolved before the elections, can also play a cruel joke on the precious metals market. Should Trump take the presidency again, the stimulus problem will drag on again, forcing gold to decline in value.

Of all metals, palladium is of particular concern. It seems that it is less affected by the US presidential election as compared with other precious metals, but the level of demand from consumers is serious. Over the past week, the price of palladium has been declining, while there was practically no reverse recovery, which indicates the absence of the previous level of demand for the metal from the main buyers, which include car manufacturers. The risk associated with restrictive quarantine measures has significantly changed the way automakers choose to reduce their productivity in such an environment.

Copper futures for December delivery rose 0.18% which sent it to $3.0918 per pound.