Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
Final hours: unlock premium data with Claim 60% OFF
Gold Prices Gain as Split Congress Pushes Dollar Lower
Published Nov 07, 2018 10:00AM ET
© Reuters. Weaker dollar after midterm elections ups demand for gold.
Investing.com - Gold prices moved higher on Wednesday as midterm elections created a divided U.S. Congress, pushing the dollar lower.
At 9:56 AM ET (14:56 GMT), gold futures for December delivery on the Comex division of the New York Mercantile Exchange gained $5.40, or 0.44%, to $1,229.20 a troy ounce.
Meanwhile, the U.S. U.S. dollar index, which tracks the greenback against a basket of six major currencies, was down 0.47% to 95.67.
A weaker greenback makes the dollar-denominated precious metal more expensive for holders of foreign currencies.
As Democrats won control of the House of Representatives, while Republicans tightened their hold on the Senate, the resulting political gridlock is expected to curtail U.S. President Donald Trump’s legislative agenda, potentially putting the brakes on plans for a second round of tax cuts or the passage of infrastructure spending.
With hopes for fiscal stimulus diminishing, the pressure for the Federal Reserve to tighten policy more aggressively has lessened, placing downward pressure on the dollar and benefiting gold.
The midterm results come just as the Fed kicks off its two-day policy meeting on Wednesday. The central bank is widely expected to hold rates steady at the current range of 2.0% to 2.25%, but investors will scrutinize the statement for any hints on how the Fed views inflation and the economy.
Investors are concerned that rising wages and increasing inflationary pressures will push the Fed to raise rates at a faster pace than expected and markets currently expect the next hike to come at the following meeting in December.
In other metals trading, silver futures gained 1.16% at $14.625 a troy ounce by 9:58 AM ET (14:58 GMT).
Palladium futures advanced 2.49% to $1,122.60 an ounce, while sister metal platinum rose 0.83% at $878.70.
In base metals, copper traded up 0.49% to $2.744 a pound.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.