Zurich (awp) – The price of gold, a safe haven which had soared in recent weeks, fell sharply on Wednesday morning, while the counts of the presidential election in the United States gave a clear lead to Republican candidate Donald Trump.
Around 7:35 a.m., an ounce of gold fell 1.3% to $2,709.40, far from the historic peak of $2,790.07 reached at the end of October. Over one month, however, the price of the precious metal is still up 3.5% and 38.9% over one year.
The price of the yellow metal was pulled down by the rebound of the dollar, which strengthened on Wednesday morning, particularly against the franc at 0.87227 USD/CHF, explained analysts at Trading Economics.
Aside from the outcome of the presidential election, “investors are closely monitoring Congressional control, with the outcome potentially significantly affecting future spending and tax policy” in the United States, the experts added.
The Republicans regained control of the US Senate on Wednesday, until now in the hands of the Democrats, by winning a majority of at least 51 seats out of 100, according to projections by the Fox News and NBC media.
According to Ole Hansen, head of commodities strategy at Saxo, “the strengthening of the dollar, the rise in yields and the fall of silver (-3.4%) were balanced against the rise in uncertainties and fears of see inflation accelerate again.
al/ib
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