Gold at multi-week peaks as dollar slumps after Biden clinches U.S. presidency
Gold prices surged to an over 1-1/2 month peak, boosted by a weaker dollar and hopes of more stimulus measures under U.S. President-elect Joe Biden.
Spot gold rose 0.3 percent to $1,956.02 per ounce by 0718 GMT, having hit a high of $1965.57 earlier, its highest since September 16. U.S. gold futures rose 0.3 percent to $1,957.10 per ounce.
The dollar index slumped to 2-month low versus its rival currencies on expectations that a calmer White House could boost world commerce and that monetary policy will remain easy.
Joe Biden clinched the U.S. presidency, offsetting worries about the worsening coronavirus pandemic. Biden crossed the threshold of the 270 Electoral College votes required for victory on Saturday by winning the battleground state of Pennsylvania.
Republicans appear to have retained control of the Senate, though the final makeup may not be clear until runoff votes in Georgia in January. A potentially divided U.S. government with Republicans in control of the Senate may mean a smaller fiscal stimulus package.
According to a Reuters tally on Sunday, global COVID-19 infections exceeded 50 million, while the United States became the first nation worldwide since the pandemic began to surpass 10 million COVID-19 infections.
Labour Department's employment report on Friday showed the U.S. economy created the fewest jobs in five months in October and more Americans are working part time.
Investors now await Bank of England Governor Andrew Bailey and chief economist Andy Haldane's speeches due later in the day, where talk of negative rates is in focus. Significant differences remain in talks over a trade deal between Britain and the European Union, as they promised to step up efforts to find an agreement.
The greenback against a basket of currencies traded 0.05 percent down at 92.17, having touched a low of 92.13 earlier, its lowest since September 1. The U.S. Treasury yields rose, with the benchmark 10-year note yield trading at 0.820 percent and the 2-year yield at 1.155 percent.