Stimulus, or lack of, has been the talk of the markets recently. The main indexes are showing its most substantial decline since the start of September. Dow Jones, the worst performer of the US session, is down around 3.2%. At the same time, the S&P 500 and NASDAQ are down around 3%, respectively.

With the last full week away from the election, alongside stimulus talks dragging along, uncertainty in the markets are at an all-time high. This is not taking into account the Coronavirus state in the United States, recording over 85,000 new cases yesterday. If the Coronavirus were stock (ticker symbol, USCVD), the stock would be up 85% year to date.

…And that excuse is the devaluation of the dollar. Gold is not immune to fundamental events. However, recently has been sideways for the most part of two months.

We are 13 days away from the election. Many polls state that Biden is winning the votes – however that’s what happened in the 2016 election. With big banks citing a decline in the Dollar over a Biden win, what will happen to commodity currencies such as the Australian Dollar and the Canadian Dollar against the US Dollar?

The Australian Dollar against the US Dollar has had a strong comeback, up 30% from its March lows. This was due to Australian commodity prices such as copper, nickel, and iron rebounding as manufacturing restarted worldwide.

Who else feels like this year has gone by so quickly? Each week ahead article, I have been talking about how the election is coming and how volatile times are coming ahead.  Now we are neck-deep into election season, with the first one in New Zealand granting Jacinda Ardern and her party a landslide victory, enabling them to govern themselves. All eyes now are on the Presidential Election in the United States and the Brexit outcome between the UK and the EU. Here is your week ahead.

Coronavirus. Vaccine? Biden. Next President? Brexit. Done in our lifetime? With a lot of uncertainty and volatility in the markets, what party do the markets want?

Volatility lies ahead as we head into the election season. One of the places investors and traders like to park their money is the iconic Safe Haven, the Japanese Yen.

Markets today bounced back as stimulus talks have come back into question. The NASDAQ is up around 0.7%, while the S&P 500 and the Dow Jones were up 0.8% and 0.43%, respectively.

We saw a retest of the 0.92 mark in early September when the Swiss Franc against the U.S. Dollar rallied as investors embraced the currency’s safe-haven status. Will we see a further strengthening of the Swiss Franc?

AUD/USD has been a strong performer in the currency markets, returning just under 30% since its March lows. We talked about how the Australian dollar was poised for a rally on a market recovery earlier this year.

The market has recovered, and the Australian dollar has recovered with it. This was due to the Australian dollar being mainly a “commodity currency,” with manufacturing worldwide slowly starting to pick up, specifically in China. Erik Nelson from Wells Fargo stated that “If you consider some of the fundamentals in Australia, you can justify the valuation of the Australian dollar at current levels” and that Australia is “very well positioned right now” about its exports to China.

However, the AUD/USD has fallen over 3% in the past couple of days. This has been on a multitude of factors, the US Dollar strengthening on Donald Trump’s recovery, recent weakness in the oil prices, and the tremulous Coronavirus situation in Australia have pushed the Aussie lower.

Gold is up nearly 3% in the past couple of days as President Donald Trump’s hospitalization due to him contracting the Coronavirus shook the markets. Like many times this year, Gold has been an anchor on volatility, providing stability in a portfolio when markets dive. However, what about the factors that are usually discussed to propel Gold past its previous highs?

We talked about the tailwinds for Gold previously; its link with inflation, dollar devaluation, future volatility, and positive sentiment. Are we starting to see these catalysts come into fruition?