Gold is showing confidence today, against the backdrop of the general tension. Market participants are currently focusing on the upcoming TV debate between Donald Trump and Joe Biden at Case Western Reserve University in Cleveland, Ohio. This is the first meeting between the current US President and the presidential candidate. There is no doubt that the tension around this discourse is going to heat up, because this is one of the most important events on a global scale. Furthermore, the dollar exchange rate largely depends on the outcome of this debate, and it also has a direct impact on the price of gold. A weaker dollar supports the price of an asset, making it cheaper for those investors who own another currency. This principle also works in reverse.
Without reducing in value, gold steadily holds its positions. The price of December gold futures on the New York Comex exchange is characterized by a rise of 0.02%. It is now trading at $1,882.6 per troy ounce. December silver futures are also not ready to lose grounds and have already increased by 0.05%, reaching the level of $23.615 per ounce.
Among other things, investors are focused on a new stimulus for the US economy. Democrats in Congress announced new ideas to support the economy and proposed spending $2.2 trillion on their implementation. According to Howie Lee, an economist at OCBC Bank, the risk sentiment will be fully justified once the bill gets approved before the upcoming election.
