NEW YORK: Gold prices lingered near record highs on Tuesday, supported by uncertainty surrounding the upcoming US presidential election, while investors awaited data for clues on the Federal Reserve’s interest rate trajectory.
Spot gold was up 0.4% to $2,753.66 per ounce as of 0730 GMT, just shy of a record high of $2,758.37 hit last Wednesday. US gold futures gained 0.4% to $2,765.80. “The lead-up to the upcoming US elections may continue to offer traction for its status as a hedge against market turbulence, further supported by a temporary breather in the US dollar and Treasury yields overnight,” said IG market strategist Yeap Jun Rong. “While stronger economic data may support more patience in Fed’s easing process, we may expect gold prices to stay supported, with rate expectations well-anchored around a smaller 25 basis point in November.”
With just eight days until the Fed’s rate decision, investors are awaiting a series of critical events to gauge their influence on the US central bank’s move.
Data this week includes US job openings at 1400 GMT, ADP employment on Wednesday, US Personal Consumption Expenditures on Thursday, and payrolls report on Friday.
Then comes Nov. 5, when Americans go to polls to elect a new president. Markets are pricing in about 99% chance of a 25 basis points rate cut by the Fed, according to CME’s FedWatch Tool. Lower rates reduce the opportunity cost of holding gold, which is also seen as a safe asset during times of economic and political turmoil.
Spot silver was up 0.8% to $33.95 per ounce and platinum rose 1.3% to $1,046.3. Palladium added 0.8% to $1,227.68, after hitting a more than 10-month high of $1,234.55 earlier in the session.
Source: Brecorder
