Silver soars as the US dollar slides on Biden’s expectation of victory

• Silver has recovered in anticipation of an electoral victory for Biden in the United States.
• DXY declines trading below the 93 level before the Federal Reserve’s interest rate decision.

Precious metals rebounded as markets priced in a Joe Biden victory in what has been a razor-sharp American election.

The US dollar fell from 93 to hit a new low of 92.48 led by the US election despite controversial voting results from several states.

With the likelihood of a bigger stimulus plan from a Democratic president next year, silver is up 4.79% at the time of this writing, having gone from a low of $ 23.8970 to a high of $ 25.1216.

So far, the market is looking past litigation threats.

However, a protracted dispute through the courts could well make markets think twice about withdrawing their bets on the US dollar, potentially limiting the rise in precious metals.

Likewise, Republicans cling to the Senate. Democrats retain a majority in the House, but it has been reduced and expectations of falling inflation offset the errors of precious metals.

A smaller tax package is a disappointment relative to previous expectations of a blue wave.

” Gold investment flows have declined, keeping the price of gold off its relative value against the dollar overall. In fact, the popular SPDR gold fund is on track for its third week of cuts in gold holdings, the largest consecutive weekly reduction since November 2019, “explained analysts at TD Securities.