​Losses in Gold Prices May Deepen with US Election Approaching

WikiFX News (30 Oct.) - With less than a week to go until the US presidential election, Biden remains ahead of Trump in national approval rating. But investors may switch from gold to the US dollar amid uncertainties of the election. Gold is expected to see its losses deepened in future trading after hitting the monthly low on Thursday.

For now, betting odds and polling data both show Democratic nominee Joe Biden in the lead. With that said, investors should not get too comfortable with polling data, considering the result of the 2016 election, an unexpected victory of Trump.

Republicans will likely vote in person, which means that polls on election day may show a sharp rise in votes for Mr. Trump. As a result, increased volatility and a stronger dollar are on the cards. Besides, the prospect of extended lockdowns in the US could spur capital inflows to safe-haven assets, keeping the dollar afloat.

On Thursday, gold prices experienced the biggest one-day decline since October 6 and also broke below a multi-week uptrend. The invalidation of the uptrend could spark a reversal as traders may switch from the comparatively illiquid gold to the dollar.

All the above is provided by WikiFX, a platform world-renowned for foreign exchange information. For details, please download the WikiFX App: bit.ly/wikifxIN

Chart: Gold Trend