Gold futures declined Wednesday, easing back from the one-week high it settled at a day earlier. “Speculators had bought gold in recent days on the prospects for a blue wave that would have put both the White House and Congress in the control of the Democrats, and therefore grease the skids for more-massive stimulus spending,” said Brien Lundin, editor of Gold Newsletter.
“The exit of those traders on the likelihood of a divided government,” with Democrat Joe Biden in the White House but Republican control of the Senate, is behind the “weakness we’re seeing in gold.” December gold GCZ20, 0.57% fell $14.20, or 0.7%, to settle at $1,896.20 an ounce.