Gold prices at the start of the Asian session continued to move up or higher. It was driven by a weakening dollar as well as expectations of stimulus that would be launched after Joe Biden won the presidential election in the US. This hope is awaited by everyone.
The spot price of gold monitored was in the area of $1956 per troy ounce some time ago. Previously, the commodity reached the 1960 range which was the highest level since September 18. Meanwhile, the dollar index moved near its lowest level in two months.
There's no denying that Biden's victory in the U.S. election did bring a lot of new hope, especially to the people there. The commitment of this presidential candidate is considered to be able to handle many things and make market movements even better.
The challenges Biden will face
Biden and his advisers are currently working on a plan to deal with the crisis facing the U.S. Starting from the pandemic, economy, and so on. Meanwhile, the price of gold strengthened due to expectations about the stimulus. It is good news for everyone.
This fund is expected as the right solution to face inflation that may happen. Last Friday, the U.S. Labor Department reported an economic slowdown there as job growth slowed in five months. Most of their residents currently work part-time.
Interestingly, this price gain did not happen to the Dollar. According to the data, one of the major currencies has actually decreased or weakened. There are several factors in the market that cause it to experience these kinds of conditions.
Market Participants' Strategy to Biden's Victory
The dollar did touch its lowest level in 10 weeks as Joe Biden's victory prompted market participants to buy the Yuan. Markets are confident that the White House will be calmer in the face of the US-China trade glut. The situation is different in the Trump era.
It is known that during the Trump period, relations between America and China often heated up. Now Joe Biden is offering something new and cooler for the relationship between the two countries. For information, the Chinese Yuan has now touched its highest level in 28 weeks.
Biden managed to surpass the 270 electoral vote threshold needed to win the election in the United States. This data can be ascertained after he won the state of Pennsylvania. Of course, this is a feat for the Democratic Party that carries it.
Republicans, meanwhile, still seem to be in control of the Senate. However, they still have to wait for the results of the vote from Georgia in January. Many people will still be looking forward to the formal announcement of who will be the next president in America.
Great Market Reaction Nowadays
Today we will wait for the continuation of the movement because the money market has reacted tremendously to Biden's victory. Meanwhile, Donald Trump, the first incumbent to unsuccessfully hold office in 28 years, has signaled that he will not accept defeat.
Trump is determined to take a legal path and is suing for some vote counts that he thinks are unfair. The move was made in the hope that he could undo Biden's victory. This is what then makes many pros and cons that happen in society.
Aside from Biden's victory, the market is now reacting very positively because of the developmental information of the corona vaccine. The upbeat mood is soaring on reports that Pfizer's coronavirus vaccine has demonstrated more than 90% effectiveness in preventing COVID-19.
In addition, so far no serious security issues have been observed by the experts. Developers stated that it is the big day for humanity and for sure science. Therefore, they will apply for emergency approval to use the vaccine by the end of November.