(Kitco News) U.S. dollar remains the main driver for gold this week as markets are cautious ahead of the U.S. election on Tuesday, according to TD Securities. “It’s election week, and market jitters are a key feature of this week’s trading environment. Amid narrow trading activity, global markets are largely trading relative to each other, leaving the rise in the broad dollar as the primary catalyst for today’s weakness in precious metals,” TD Securities strategists write. The biggest risk to gold this fall seems to be a contested election, they add. “We have identified risk mitigants in the medium-term, which suggest that the balance of risks is tilted to the upside in both a Blue Wave and with a divided government, leaving the contested outcome a primary risk for gold bugs,” the strategists say.
Author: Anna Golubova