Trump or Biden? How gold prices could move
Live MintAs the US elections headed towards a tight finish, gold prices remained choppy today. In global markets, gold was down 0.6% at $1,897.01 an ounce as early tallies suggested the outcome of the American presidential race between Donald Trump and Joe Biden could be closer than polls had suggested. In terms of connotation for the markets, we should brace for a transient sell-off in US equities and fall in US dollar, Ergo, Gold could rally higher, helped by a tumbling US dollar and concerns of higher fiscal spending and potentially rising inflation. In case of Biden as the next US President, Base metal prices should move higher as US/Chinese relationship will stabilize and markets start pricing in a probable trade deal," said Hitesh Jain, Lead Analyst – Institutional Equities. "On the contrary, If Trump reclaims Presidency and Republicans maintain majority in the US Senate, we could have an ensuing stock market rally and stronger US dollar, as investors will be pleased with the fact that US corporate taxes will remain low.