Trump has pledged to implement heavy trade tariffs on China, intensifying economic pressure on the country as it struggles with ongoing deflation and a prolonged slump in the property market.
This week, attention is also on the National People’s Congress in China, where more insights are expected regarding Beijing’s plans for fiscal stimulus.
Gold prices edged lower in Asian trading on Wednesday, weighed down by a rise in the dollar and Treasury yields, as early voting indicated Donald Trump leading Kamala Harris in the 2024 presidential race.
Although the precious metal remained near recent record highs, the election results were still too close to call, with Trump gaining ground in several crucial battleground states, including a win in North Carolina.
Spot gold slipped 0.2% to $2,737.27 per ounce, while December gold futures dropped 0.1% to $2,746.10 per ounce by 23:34 ET (04:34 GMT).
The dollar and yields surged as early voting results showed Donald Trump leading, with 230 electoral votes compared to Vice President Kamala Harris’s 192. The dollar climbed to a near four-month high, pressured by the rising yields. The Associated Press also reported Trump’s victory in North Carolina, a critical battleground state, while he maintained leads in other key swing states such as Arizona, Pennsylvania, Wisconsin, and Michigan.
Trump is anticipated to implement more inflationary policies, given his positions on protectionist trade and immigration. This could lead to sustained higher interest rates over the long term.
However, with vote counting still ongoing in six key battleground states, the election outcome remains uncertain.
This week, attention also turned to a Federal Reserve meeting, where the central bank is widely expected to reduce interest rates by 25 basis pointsPrecious metals saw broad declines on Wednesday, with platinum futures dropping 1.2% to $995.65 per ounce, and silver futures falling 1.1% to $32.430 per ounce.
Copper prices also took a hit, with the prospect of a potential Trump victory raising concerns over increased economic pressure on China, the world’s largest copper importer. Benchmark copper futures on the London Metal Exchange fell 1.8% to $9,558.50 per ton, while December copper futures dropped 2.3% to $4.3585 per pound.
Trump has pledged to implement heavy trade tariffs on China, intensifying economic pressure on the country as it struggles with ongoing deflation and a prolonged slump in the property market.
This week, attention is also on the National People’s Congress in China, where more insights are expected regarding Beijing’s plans for fiscal stimulus.
