• Change of culture needed

    The right leadership will help SA shed its culture of violence, says Mandi Smallhorne.

  • 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

See More

Gold rallies as Obama gains ground

Nov 07 2012 07:05 Reuters

President Barack Obama (AP)

Related Articles

Rand flat, eyes US election

Obama slams Romney on taxes

US unemployment ticks up to 7.9%

Markets cautious ahead of US vote

A new way to go for gold

All Gold Fields mines back on track

Singapore - Gold extended gains on Wednesday ahead of the result of a tightly fought US presidential election, after rising nearly 2% the session before on speculation that victory for Barack Obama could mean further economic stimulus.

President Obama was gaining momentum against Republican challenger Mitt Romney on Tuesday, as US voters decided between two starkly different visions for the country.

Bullion rallied to an 11-month high above $1 795 an ounce in early October after the US Federal Reserve announced its third round of aggressive economic stimulus in September, helping gold by fuelling fears of inflation and maintaining pressure on interest rates.

“If Obama wins, then we are likely to see loose monetary policy continuing,” said Lynette Tan, senior investment analyst at Phillip Futures in Singapore.

“A Romney win would probably pressure gold, however, as ... there’s probably more hope for an economic recovery (under Romney) and less demand for an alternative investment in gold.”

Gold reversed early losses to hit around $1 722/oz, its strongest since November 1. It stood at $1 719.06 at 05:03, up $3.72.

US gold for December added $4.00/oz to $1 719.

“The market is really calm, which means consumers are not doing much. They are just waiting to see (the outcome of the US vote). People have taken the opportunity to buy back after the market dropped on Friday,” said a physical dealer in Singapore.

“I think India has bought enough, unless there’s a sudden last-minute rush.”

The festive season in main gold consumer India peaks in November with Diwali, the Hindu festival of lights. Weddings also take place at this time, with gold jewellery forming a key part of the dowry daughters receive from their parents.

But gold imports to India could fall to 550 tonnes next year, after touching 967 tonnes in 2011, as high inflation and prices bite into disposable incomes of consumers, the head of a trade body said on Tuesday.

In other markets, shares were capped while the yen gained as investors guarded against the risk of an indecisive outcome in the close-fought US vote.

barack obama  |  mitt romney  |  us elections 2012  |  gold



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Add your comment
Comment 0 characters remaining

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

Top 10 richest musicians of all time

Check out the gallery to find out who they are!


Luxury living

10 of the most expensive things that will leave your jaw hanging!
Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote