Gold down 1% as US election race tightens, equities are high
The gold price has been under pressure as the race between the Democratic challenger and Republican leader Donald Trump tighten after Trump has taken a lead in the majority of swing states.
The sharp selloff in gold price is blamed on the strengthening US dollar. The greenback soared sharply after Donald Trump secured most of the electoral votes from big states like Florida and Ohio. The USD index, which tracks the US dollar against the basket of six major currencies, jumped above 94 levels as Trump’s win is assumed to support the safe-haven assets.
Results show that Trump has won Florida and Ohio, adding 47 electoral votes to the total count.
The president has also won Texas that accounts for 38 electoral votes. The initial results show that Donald Trump is leading in key swing states including, North Carolina, Pennsylvania, Wisconsin, Michigan, and Georgia. Meanwhile, Joe Biden is leading in Nevada and Arizona.
The stock market indices have also been rallying ahead of the final results. The S&P 500 lost some points as the race between the top two contenders tighten. The border market index has hit the $3400 level early today while the Nasdaq has also lost early gains.