Polls to elect the 45th US President will close between 12am and 6am GMT.
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In other news, falling consumer demand and a halving of central bank purchases resulted in a 10 per cent drop in gold buying in the third quarter, data from the World Gold Council showed. The market hadn’t seen a single-session rise of that size since the day after the U.K.’s surprise vote to leave the European Union. He said the market perception is that Clinton will defeat Trump, and she does not cause the uncertainty that Trump does. “If the S&P breaks 2,000, gold will be up $100”.
“The uncertainty arising from Trump’s policy platform, where consistency is secondary to populist appeal, is likely to reduce market confidence on USA growth initially, and possibly upend global trade in the longer term”, said Mizuho Bank analyst Chang Wei Liang. Much of the action was in currencies where the Mexican peso MXN=D2 has become a touchstone for sentiment on the election as Trump’s trade policies are seen as damaging to its export-heavy economy.
“When you have a change in political administration in the United States, gold has historically appreciated about 10% over the following 12 months”.
The net result of the opposite directions was that gold will cost roughly the same today as it did yesterday for British buyers.
In Pakistan, the gold price in the local bullion markets hits fresh peak of Rs 52,200 per tola, increased by Rs 500 on the back of ongoing developments in USA. Gold closed Monday down 1.9% at $1,279.40 an ounce, its lowest settlement since October 27 and largest single-session percentage loss since October 4, according to FactSet data. Asian shares rallied on Thursday and the dollar firmed in a remarkable snapback from the shock of Trump’s presidential victory, though market participants were still concerned about the lack of details on the president-elect’s policy path.
Trump’s presidential-sounding early morning speech helped ease investor fears and saw the gold price drop back said Florian Ielpo, head of macroeconomic research at Geneva-based Unigestion. In that case, the comparative safety of gold is likely to make it a winning proposition if global markets are once again destined for territory that sits well outside what could be considered the comfort zone.
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Gold fell in Asia on Monday together with the yen and the Swiss franc, while equities and equity futures rose, as investors recalibrated their expectations of the race after the FBI’s second intervention.
