Gold price edges higher but remains uncertain amid expectations for Trump winning the US presidential elections.
US President Biden withdraws the re-election bid and nominates Kamala Harris to lead the Democrats.
The US Dollar edges lower ahead of US data-packed week
Gold price (XAU/USD) exhibits uncertainty near key support of $2,400 in Monday’s European session. The precious metal remains on tenterhooks amid growing speculation that Donald Trump-led-Republicans will win the United States (US) presidential elections in November.
Market experts see Trump’s victory as favorable for economic growth as he has promised cuts in corporate taxes and interest rates. This has fuelled upside risks to consumer inflation expectations. Experts also expect further trade restrictions if Republicans enter the White House. The prospects of Donald Trump winning elections grew after an assassination attack on him and US President Joe Biden’s withdrawal from the re-election bid, which has paved the way for Vice President Kamala Harris as the nominee of Democrats.
Rising odds of Trump’s victory have improved the US Dollar’s appeal. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, slightly retraces to 104.20 on Monday after a strong recovery from a four-month low of 103.65.
10-year US Treasury yields decline to 4.22%. Lower yields on interest-bearing assets reduce the opportunity cost of investing in non-yielding assets, such as Gold.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.