Gold briefly rose nearly 3%—what exactly did the election change?
In the U.S. midterm elections, Democrats won control of both the House and the Senate. On the day the results came in, spot gold rose as high as $4,041 intraday, up 2.9%, and climbed back above $4,000. The U.S. Dollar Index fell to a one-month low.
Reuters pointed to two main reasons: a weaker dollar made gold cheaper for buyers using other currencies; and with Congress and the White House controlled by different parties, legislation could stall, potentially slowing the economy. Some analysts believe this could make the Fed lean toward easing.
But policy itself hasn’t changed yet. The new Congress won’t convene until January 3 next year, and any bill would still have to get past Trump. On Election Day, he said he had veto power; overriding a veto requires a two-thirds majority in each chamber.
So this rally reflects expectations about future growth and interest rates, not policies that have already been enacted. From here, gold will still be watching the dollar and interest-rate data, including today’s nonfarm payrolls report. #黄金 @罗尼交易指南
In the U.S. midterm elections, Democrats won control of both the House and the Senate. On the day the results came in, spot gold rose as high as $4,041 intraday, up 2.9%, and climbed back above $4,000. The U.S. Dollar Index fell to a one-month low.
Reuters pointed to two main reasons: a weaker dollar made gold cheaper for buyers using other currencies; and with Congress and the White House controlled by different parties, legislation could stall, potentially slowing the economy. Some analysts believe this could make the Fed lean toward easing.
But policy itself hasn’t changed yet. The new Congress won’t convene until January 3 next year, and any bill would still have to get past Trump. On Election Day, he said he had veto power; overriding a veto requires a two-thirds majority in each chamber.
So this rally reflects expectations about future growth and interest rates, not policies that have already been enacted. From here, gold will still be watching the dollar and interest-rate data, including today’s nonfarm payrolls report. #黄金 @罗尼交易指南
