Oil advanced near $38 a barrel and gold climbed for a third day as President-elect Joe Biden prepared to transition into the White House even as Donald Trump rejected the outcome of the U.S. election. Crude futures in New York rose 2.3% and spot gold added 0.2% amid a broader rally in global stocks. The dollar extended declines. While Biden declared victory and prepared to navigate America’s pandemic-hit economy out of crisis, the unresolved status of Senate control may dampen prospects for major stimulus before January. Meanwhile, Trump’s campaign team mounted lawsuits in key states after alleging election fraud.
Biden promised swift action against the pandemic and an orderly transfer of power during his victory speech over the weekend, but he inherits a divided country and an economy ravaged by the coronavirus as infections race toward 10 million. While a second Covid-19 wave across Europe is raising concerns about demand, trade data showed China is continuing to recover.
“The expectations of a more predictable and steady incoming Biden administration and the hopes of an additional stimulus package are pushing the prices of oil higher along with gold,” Will Sungchil Yun, a senior commodities analyst at VI Investment Corp., said by phone from Seoul. “Still, volatile prices should continue in the longer term with Trump potentially delaying the entire process and the resurgence of coronavirus happening in Europe.”
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