The gold bulls are surging as the closely contested U.S. mid-term election ballots continue to be counted. The precious metal raced to a £43 ($50) gain as votes were cast during Tuesday trading, taking it back ahead of the 50-day average in less than 60 minutes.
Gold’s rally saw it hitting a daily high of £1,499 ($1,720) before settling at £1,495 ($1,716).
Carsten Fritsch, the Commerzbank analyst said the bulls are benefiting from a weakening dollar, explaining “The upswing was boosted by the depreciation of the U.S. dollar. The latest surge in the gold price is likely to have been attributable to covering of speculative short positions. They amounted to a good 40,000 contracts just a few days earlier, according to the CFTC, putting them only marginally below their late-September high.”
With an inflation report due later this week expected to show a slight fall from 8.2% to 8.0%, observers expect gold will continue to rally. Don’t delay. Buy now as prices continue to rise.
