Key points

• Donald Trump trailing behind the democratic nominee Joe Biden
• Continued QE from across the globe likely to push gold even higher
• Gold trading in a descending triangle.

Precious metal markets are currently holding steady as investors eagerly awaits the final results of the historical U.S. elections. Current poll results indicate that President Trump holds 214 electoral votes against 243 of Joe Biden. The ongoing contenting between the candidates will likely trigger some increased volatility.

Investors will be transitioning from risk assets into gold and silver if the fight between the two candidates becomes too vicious for comfort. On the contrary, if the official data declares an outright winner then equities are destined to rally. In the former scenario, Gold will likely challenge $2071.00 per ounce, the August highs.

Today the Bank of England voted unanimously to keep interest rates constant at 0.1% and gear up the Central Bank’s asset purchase program to a whopping £825 Billion. This continued increase in Quantitative Easing carries the negative effect of reducing the value of fiat money in the long-run. A future valueless currency will drive investors into safe haven assets one of them being the “yellow metal”. Debt levels are souring to all time highs, rising the doubts about the ability of the government to repay the debt without significantly crippling the economy.

The Federal Reserve is due to announce its interest rate policy announcement during the U.S. session. Amid the ongoing election impasse, Chairman J. Powell is expected to repeat his previous comments in regards to the Central Bank’s commitment to do whatever it takes to save the economy from a severe recession.

On the technical front, Gold spot is trading in a descending triangle and a short term breakout is hinged on the outcome of the U.S elections. In that same region, prices are loitering around the upper resistance line of a yearly ascending channel. A slip further down will meet support at the $1711- $1776 region, on the top side long term bulls will target the $2038 handle before charging towards $2076 region.