Obama election win boosts bullion prices and gold-related shares
Gold prices and gold-related shares have received bullish impetus from President Barack Obama's second-term election win.
Gold prices reversed last week's losses to tap a one-week high of $1,725 per ounce, with some analysts speculating that the precious metal will re-approach $1,800 prior to the year's end. Gold futures for December also gained $8.80 an ounce to hit $1,723.80.
Obama's election victory has been interpreted by markets as highly favorable for the precious metal due to expectations that a second term for the incumbent US president will mean further easing of monetary policy and greater inflation.
Over in Asia both gold miners and retailers of gold jewellery listed on the Hong Kong Stock Exchange enjoyed robust gains following news of the election outcome.
Zijin Mining (SEHK:2899), one of China's largest gold miners and the operator of the largest open pit gold mine in the Middle Kingdom, rose 6.2% to HKD$3.27, while jewellers Chow Tai Fook (SEHK:1929) and Luk Fook (SEHK:0590) gained 4.96% and 5.34% respectively.
Prior to the election outcome veterans investors had anticipated bullish impetus for gold in the wake of an Obama win.
Earlier trading had also reflected expectations of a second-term for the incumbent candidate, with gold climbing back to the $1,700 level on Tuesday morning while voters were still at the polls.