Lates News

After the Democrats' sweeping victory in the U.S. midterm elections, Ole S. Hansen, head of commodity strategy at Saxo Bank, said that among all asset classes, precious metals are undoubtedly the biggest winner of the election outcome. Boosted by a weaker dollar and falling U.S. Treasury yields, both gold and silver prices rose. Gold had been in a sharp downtrend since hitting a high of nearly $5,600/oz at the end of January. However, Hansen said gold may now be starting to challenge that downtrend. In October, gold briefly fell below $4,000/oz, but it has since reclaimed that level overnight and is currently trading at $4,043/oz, up nearly 3%. Hansen believes short covering could further strengthen gold's upward momentum. If the market believes Democrats will limit Trump's ability to further expand fiscal spending, falling U.S. Treasury yields would enhance the appeal of non-yielding assets such as gold. Silver also rose about 4% to $52/oz. Copper, however, has so far risen only modestly. Hansen noted that with Trump's policy actions facing more constraints, the likelihood of the U.S. imposing tariffs on copper imports has decreased.