As investors are keeping close monitoring on the state of Georgia’s runoff election results, bets on precious metals are kept to a minimum.
The on-going uncertainty sent gold futures to trade lower after a 0.18% fall for the day.
Nevertheless, the contract remains robust above the $1,900 per ounce threshold after settling at $1,943 per ounce.
The leading metal commodity surged more than 2% in the previous session along with reports on the growing number of Covid-19 worldwide.
According to a commodity expert, a $2,000 per ounce price projection remains optimistic for the bullion despite today’s fall.
The US dollar, which usually acts inversely proportional with the performance of gold, is projected to remain week in a short to medium-term guidance.
This is amid the growing number of infections worldwide, with more locations announcing the extension of their strict lockdowns.
The weak dollar gives the precious metal the leverage that it needs to keep surging in the coming trading sessions.
Traders are currently maintaining a rigid watch on the result of the runoff elections which will determine the controller of the chamber in Biden’s administration.
Consequently, the details on the Federal Reserve’s latest policy meeting in December is also due for release on Wednesday.
According to experts in the field, the central bank may resort to its incumbent dovish monetary policy and remain accommodative of inflation.
Should reports turn out to be true, gold will greatly benefit from the decision being considered a good hedge against inflation.
The yellow metal is a non-yielding, safe-haven asset, making it an ideal choice among investors during an economic frenzy.
How are Nickel and other Metals Performing?
Despite other metals’ demise amid the growing uncertainty in the market, some metals still managed to cap the day with significant gains.
Nickel sustained the momentum started in the previous session where it gained as much as 4.8%and closed at $17,404 per tonne.
The lustrous metal currently trades at $17,480 on the London Metal Exchange.
Following the upward trend, copper surged above the $7,900 per tonne threshold, capitalizing the opportunity that works against the weak greenback.
The three-month copper price in the LME also edged higher by 0.8% and steadied at $7,860 per tonne.
Other industrial metals are also leading the way. Three-month tin price in the benchmark hiked to $21,200 per tonne, supported by robust demand from key markets.
The optimistic outlook for greater industrial activities during the year amid the prospects for a swift recovery remains the biggest puller for the metal commodity.