Spot gold prices fall as US awaits outcome of election results

Gold bars are pictured on display at Korea Gold Exchange in Seoul, South Korea.

Janomot report: With no clear outcome who will win the US presidential elections, gold prices fell across markets in the early hours on Wednesday

Spot gold prices dropped by 0.5% to $1,896.44 per ounce, according to Reuters. US gold futures also dropped by 0.7% to $1,897.10.

As battleground states in the US declare poll results, investors believe that the prolonged wait for decisive results from the US elections has shaken investor confidence.

Warren Patterson, head of commodities strategy at ING Bank NV in Singapore, told Bloomberg, “An improvement in odds for Trump has been positive for risk appetite, which has weighed on gold.” A win for Biden could pave the way for more fiscal stimulus being injected into the US economy and could prove beneficial for equity and commodity markets.

Howie Lee, an economist at Oversea-Chinese Banking Corp, told Reuters, “Gold has declined with the increasing odds of a Trump win, but oil is clawing back some losses after last week’s sell-off.”

The precious metal has gained 25% based on unprecedented global stimulus injected by several central banks in order to subside the effects of the coronavirus pandemic.