Gold ahead of the First debate!


This post is also available in: فارسی (Persian)

Biden ready to Attack on Tax issue on either side

By: Ahura Chalki

Financial markets will have a crazy day ahead. In the EU, while yesterday Mrs., Laggard yesterday had nothing new to say in her speech, Today Mersch’s speech must be important. As we saw in the past 10 months, unlike “Mario Draghi”, Laggard’s speeches usually have not much to say about new policies and her colleagues usually change the game and markets more than her. Besides that, Ramsden from BoE asserted that the negative interest rates will not be used imminently and today we have to see if Bailey will have his back and confirm his comments or not.

Later and after all of them, it is just the starting in the North American market, the FED speech fest will start with Williams, Harker, Clarida, and Quarles. However, it is not the end, few hours after that first Presidential debate will start.

About the EU, what is already clear is that ECB members, most are not happy with Euro value, especially now, when they need more export and are able to compete with the US, and their other competitors in the market to get more share over there. So, what we normally must be a wait for is policies like to keep the interest rate as low as possible for a much longer time, while they would like to let the inflation raise more.

In the UK, for now, seems like it is a long way to go under zero level for Interest rates. So far, the focus turned mostly to Brexit talks at the moment, and probably policymakers in MPC will be waiting to have a clearer idea from ongoing talks.

But the center of attention, today mostly about the US, where four FOMC members will have speech and later on first presidential debate will be held.

After the NYT report of Trump’s tax information, seems a very good point for Mr. Biden to start his attack. The tax cut and how to use these tools to boost or control the markets is one of the main discrepancies between the two parties. No matter if the report has the correct information or not, what is here more important is market sentiment, especially when we are talking about the largest economy of the world. Even though the presidential rally starts almost two years before the election, however, beginning of debates, traditionally brings the most convulsions in the markets, for now on till November 3, we have to wait for many surprises and it causes the tensions, severe growth, and decline, best opportunities for Safe-Havens to stabilize their position in the market.

For the Gold market, at the moment with all speeches from FED members, we cannot wait for more to hear. Mr. Powell and Secretory Menuhin told whatever they have to say in their testimony of last week. On the other hand, it is also likely to see the next coronavirus AID package to be passed before the election, since both parties are looking after a good image and trying to convince the ten percent who have not yet made a decision based on statistics, that they are better and more trusted, so, things are clear here, what is not much clear is Trump-Biden “sham quarrel” and what is going to get out from that by media, however, whatever it will be, at the moment means more hell to create and we need more -Safe- Havens.

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