The new lockdowns announced in Europe and around the world have not had a significant impact on the gold price so far. This means that investors probably feel as though the impact of the coronavirus has already been priced in. But primarily, they are in a wait and see mode ahead of the imminent US presidential election.
The real question is not only linked to the name of the winner, but also from what political decisions the new government will take. The crux of the matter is understanding what the impact of a Biden Government or of a Trump II one will be on different assets (stock markets, Dollar, US bond and Fed rates) to predict the consequences on gold demand. This is not something that markets are able to do in just a few hours. We can therefore expect some volatility for days or weeks while investors try to understand the layout of the new financial environment in order to recalibrate their portfolios.
