Gold Prices Jump as Investors Panic Over US Midterm Elections

Oil Crashes and Gold Spikes

Gold prices crept up during early Asian trading sessions today. The shiny metal jumped over two percent during the previous frantic trading session. A brutal crash in global oil prices finally eased terrifying inflation concerns. Panicked investors are nervously biting their nails over the US midterm elections. Spot gold rose exactly 0.3 percent to hit $3,960.80 an ounce today. It desperately extended its gains after bouncing from a miserable one-year low. US gold futures for December delivery settled at exactly $3,970.80. Meanwhile, global oil prices crashed by a massive seven percent on Monday. Tehran ruined the market by announcing their trade war negotiations remain stalled.

Traders Bet on Interest Rates

Strong domestic demand helped US manufacturing activity rebound slightly in October. Financial markets are obsessively watching the American midterm elections right now. Traders desperately need clues about future fiscal policy and overall investor confidence. The CME Group's FedWatch tool shows traders betting heavily on the Federal Reserve. They predict a massive 73 percent probability of another interest rate hike. Higher interest rates completely destroy the appeal of holding non-yielding gold. Silver rose 0.3 percent while platinum gained a pathetic 0.2 percent today. Investors need to stop gambling and watch the actual market data closely.

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