Democratic leadership in Georgia’s runoff election should be positive for gold, as more stimulus can be expected from a Democratic-controlled Senate, but gold prices have fallen today instead.
Gary Wagner, editor of theGoldForecast.com, said the markets took on a more risky feeling after the news.
“I believe that Dow Jones had a lot to do [with it], putting in a risky market environment and removing that feeling of safe haven, and that’s one of the reasons we saw such a quick sale, said Wagner.
The other reason for the gold retraction is that financial institutions have started to make profits at current levels.
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