​Gold Waiting for Bullish Extension on a Biden’s Victory

WikiFX News (9 Nov.) - Biden declared victory in the election and addressed the nation on Sunday. Market risk appetite was therefore lifted, boosting gold at the expense of the US dollar. Gold prices in the Asian market started Monday with a modest increase, up to $1958.59 per ounce.

According to the latest data from Fox News, Biden has beaten Trump with 290 electoral votes. Market risk appetite was fueled by the projection that Biden would take a softer approach to international trade. Worries about a further split Congress weighed on the DXY, which nudged slightly lower on Monday to a two-month low of 92.17.

Bidens launch of a larger stimulus package is also expected. While inflation may depress the greenback, gold will embrace a significant increase in the purchase as a hedge.

Gold gained choppy advances last week, reaching as high as $1,960.39 per ounce, with bullish extension expected in the near term amid the declining dollar and the boosted risk sentiment.

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Chart: Ballots of Biden vs. Trump