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(Kitco News) – After hanging on to a knife blade, Joe Biden’s victory seems almost confirmed now (laid bare and Trump’s legal victory) and spot gold is trading 0.55% higher. The official date for Biden to enter the White House is set for January 20, 2021, but there could be delays as the current president appears to be in the usual defiant mood. Returning to market reaction, Asian stocks traded higher earlier in the week. Japan’s Nikkei 225 rose 2.26% (the highest close since 1991), Australia’s ASX rose 1.75%, and China’s Shanghai Composite rose 1.68%. The sentiment appears to be driven by the fact that Biden could unravel all the work Trump has done on protectionism. It has been said that it would be easier for China and less likely to pull the trigger on tariffs.
Across the rest of the metal complex, silver gained 0.70% but failed to break above the resistance level of $ 26.02. This level was the previous consolidation low from mid-August to mid-September and appears to be a fairly bullish area. The WTI spot jumped more than 2%, while zinc (1.43%), lead (1.34%) and aluminum (0.34%) all traded higher on the day at next day.
In forex markets, the onshore Chinese yuan rose to 6.5789 per dollar (the highest since 2018), after seeing levels above 6.65 last week. In the majors, commodity currencies stole the show. AUD / USD and NZDUSD are trading half a percent higher, while USD / CAD has fallen 0.32%.
It was a slow nighttime session for the first level economic data. Australian building approvals showed impressive but expected gains of 15.4% from the previous -2.3%. In Japan, the Bank of Japan summary stressed the need to avoid prematurely ending easy monetary policy.
For the day ahead and highlights include the German trade balance and comments from Lagarde from the ECB, Bailey from the BoE, Mersch from the ECB, Haldane from the BoE, Mester and Harker from the Fed.
Warning: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not a solicitation to effect an exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.
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