Gold Stronger As Biden Ends His Re-Election Bid

Gold is 0.3% higher in today’s Asia-Pac session, after closing 1.8% lower at $2400.83 on Friday. Bullion is currently over 3% lower than its fresh record high set last Wednesday.

• Gold gained today as markets weighed President Joe Biden’s decision to end his re-election bid, which sparked fresh questions over whether the move will help or hinder Donald Trump’s chances of returning to the White House.
• There have been reports that former President Obama and senior leader Pelosi told him privately that it was time. Biden has endorsed VP Harris, but it is not a given that she will automatically be the party’s candidate. She will still need to have the endorsement of at least 1976 delegates at August’s Democratic Convention.
• According to MNI’s technicals team, the trend condition in gold remains bullish, despite the fade off the mid-week highs and the medium-term trend still points higher. The breach of key resistance at $2,450.1, the May 20 high, opens the $2500.00 handle next. Initial support is at $2,389.5, the 20-day EMA.