Producers of metals and other raw materials climbed as gold prices traded sharply higher, with uncertainty surrounding the U.S. Senate runoff elections in Georgia offering support for the haven metal.
Analysts say that a Democratic capture of both seats up for grabs in Georgia could spark further declines in the dollar, since the party supports greater government spending on pandemic relief efforts.
That could boost precious metals because investors tend to buy gold as a hedge against inflation.
"A Democratic sweep would mean control of the Senate and would almost certainly result in much larger stimulus packages this year, which would be very good for gold," said Tai Wong, head of base and precious metals derivatives trading at Bank of Montreal.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-05-21 1710ET
