Gold rises as trade hopes dent the dollar
Focus now turns to the US jobs report as SPDR Gold holdings rise to highest since late August
Bengaluru — Gold rose on Wednesday as the US mid-term elections delivered a split US Congress and pressured the dollar, with investors now turning their attention to a US Federal Reserve meeting for clues on future interest rate hikes. Spot gold was up 0.6% to $1,233.88 an ounce at 11.06am GMT, while US gold futures climbed 0.7% to $1,235.40 an ounce. “This outcome of the mid-term elections was expected by the financial markets. It would have been a big thing if gold was surprised by that,” said Julius Bär analyst Carsten Menke. “Today we just see gold moving in lock-step with the dollar; the dollar is down and that is what is mirrored in the gold price.” The dollar index fell half a percent against its main rivals, making bullion more attractive for holders of other currencies, as a split Congress dampened expectations for a major fiscal policy boost to the economy. Democrats won control of the US House of Representatives, giving them the opportunity to block US President Donald Tr...
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