Gold prices rose sharply on Tuesday, with uncertainty during runoff elections for the US Senate in Georgia.
In data published on Tuesday, the US ISM manufacturing index has climbed since August 2018, dispelling fears about an economic recovery from the epidemic, and with strength in the domestic stock market, producing some headwinds for gold earlier in the session did.
However, Jeff Wright, executive vice president of Goldmanning Inc., told Marketwatch that Tuesday was backed by uncertainty about the “election taking place in Georgia more than anywhere else”.
If Democrats win both seats in the Georgia runoff contest, it could make it easier for President-elect Joe Biden’s administration to pass legislation that would affect trade in stocks, including repealing corporate tax cuts imposed under the Trump administration Can.
There are fears that Democrats “can control both houses of Congress”, and “push through radical tax policy, run away from spending, and change any change of divided government,” Wright wrote.
Read: Why You May Have to Wait Last Tuesday for Georgia Election Results
The result of Georgia’s Senate runoff elections “will have massive implications for the country in the coming years,” Oda senior market analyst Craig Erlam wrote in a daily research note.
“Republicans need only one seat to retain their majority with a double Democrat victory, giving them the vice presidential voting vote [Kamala Harris],” he said.
Gold GCG21 for February delivery in Tuesday deal,
According to FactSet data, Monday rose 2.7% to $ 7.80, or 0.4%, to $ 1,954.40 an ounce, taking bullion to its highest level early Monday.
Silver futures SIH1 SI00 for March delivery, meanwhile, settled at $ 27.640 to start 2021, with gains of 27.6 cents, or 1%, up 3.6% for gold sister metal.
Wright said he is “returning $ 2,000 in search of gold in the coming weeks after Biden took over the administration.”
Meanwhile, the new implementation of the lockdown measures in the UK, EU and the US created some obstacles on Wall Street specifically to limit the spread of coronaviruses and, perhaps, increased appetite for bullion.
See: January will be the worst month ever for the US epidemic, which has seen an increase in cases since the trip so far.
Highly sensitized stress of recently discovered COVID-19 in Britain has also been found in New York, the state governor said on Monday, and London announced a strict national lockdown, even in many parts of the world. Are also being planted.
But US data released on Tuesday morning showed that the ISM manufacturing index climbed to 60.7% in December 2018, reaching its highest level since August 2018, slowing the appetite for gold and some of the earlier deals Indicating losses. The US benchmark stock index also traded roughly one day after its first loss since 2016, opening the new year.
A soft start for the US dollar, following its annual yearly slide since 2017, also helped to suppress gold and silver prices. ICE US Dollar Index DXY,
On Tuesday there was a 0.5% drop at around 89.466, hanging at its lowest level since the spring of 2018. A weaker dollar may make gold more attractive to foreign buyers.
Comex, March Copper Rounding Metal Action on HGH21,
Finished at 8.5 cents or 2.4% at $ 3.6395 per pound.
April Platinum PLJ21,
Added $ 48.10, or 4.5%, to settle $ 1,119.60 per ounce and March Palladium PAH21,
One ounce at $ 2,493.40, ending at $ 102.20 or 4.3%.