(Kitco News) There were no surprises on the price front this week as gold remained stuck in a wide trading range around the $1,900 an ounce level. But as markets anxiously await the election, analysts point to one key driver that could push gold significantly higher before November 3.
Gold began the week just below $1,915 an ounce and on Friday afternoon was trading at $1,906.20. The price action has been highly dependent on the U.S. dollar moves, which fluctuate based on stimulus on/off headlines.
As the optimism of seeing the U.S. stimulus package before the election fades, markets are still holding out hope, analysts told Kitco News on Friday.
“There is one catalyst that could move gold prior to this election — some type of stimulus package,” said Kitco Metals global trading director Peter Hug. “And every day that goes by, it becomes less and less likely. But markets are still anticipating it.”
If there is stimulus on the table between now and next weekend, gold could see a move up through $1,925, Hug pointed out. On the downside, support remains at $1,875 and then $1,850. “Can’t see gold dropping below that unless there is a major market selloff.”
On the other hand, if there is no additional stimulus before the election, it could delay any fiscal help