Gold is in demand as markets are cheering the growing chances of a certain US election, where Democratic Joe Biden arrives on top within hours or days rather than seeing a drawn-out legal process. Moreover, Republicans – on course to retain the Senate – seem more willing to support a new stimulus package. Bearish fundamentals are weighing on the Greenback and associated with the prospect of fiscal expansion under a Democratic White House, but today’s deeper depreciation has been compounded by increasingly negative technical impulses as the Buck breaches multiple key chart and several psychological levels. In index terms, the decline to and just through 92.500 was palpably quicker once 93.000 gave way, although underlying bids have subsequently arrested the slide as the DXY hovers near the bottom of a 92.473-93.548 band following the first of two scheduled press statements from the Trump campaign in Philadelphia. Note, the 2nd in Las Vegas, due around 16.30GMT, has been billed as a ‘major announcement’ and touted to be the launch of a lawsuit against votes cast by people no longer domicile in Nevada. Also to come, but probably overshadowed by the ongoing election uncertainty, November’s FOMC and post-meeting presser from Fed chair Powell that we have previewed as a policy event for those who would like to be fully prepared (available via the Headline Feed and in the Research Suite section of the Newsquawk website).
