On Wednesday, we saw a rise in gold prices as the U.S. mid-term was underway. Spot gold prices were up 0.4 percent, coming in at $1,230.68 per ounce. Gold futures we able to climb up 0.5 percent as well.
Unfortunately, the dollar index fell over half a percent. Doing so made bullion look better for holders who utilize other forms of currency.
Democrats were able to win control of the U.S. House of Representatives. Doing so gives them the opportunity to stop any of President Trump’s attempts for more tax cuts. According to an analyst from Commerzbank, the Fed will no longer have to conduct as many rate hikes. However, doing so will negatively impact the U.S. dollar. If that happens, Trump may begin to focus more on foreign policy. Either, gold will profit well in the long term.
During times of financial and political uncertainty, investors usually turn to gold as insurance. Those who participate in the stock market will be keeping a keen eye on the two-day Fed meeting which will occur later on today. They will be gauging the U.S. monetary policy for the future.
Rise In Gold Prices Over The Week
Though investors expect the Fed to keep current interests rates where they are, markets are looking to see if there becomes any information on a possible December rate increase.
SPDR Gold Trust is one of the world’s most substantial gold-backed exchange-traded funds. Their holdings fell for the third straight season on Tuesday to 756.70 tonnes.
Silver was able to see a rise in price as it went up 0.9 percent, coming in at $14.67 an ounce. Palladium saw it’s own rise of 1.2 percent, making the precious metal $1,129.60 an ounce.
Platinum was able to go up 0.6 percent this week, making it $873 an ounce. It was at $877.50, the highest it’s been in over four months.