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Gold steady as markets brace for US election, likely Fed rate cut

Gold held steady on Monday as financiers got ready for a key week for the international economy ahead of the U.S. presidential election and the possibility of another rate cut by the Federal Reserve.

Spot gold edged up by 0.1% to $2,738.32 per ounce, as of 0227 GMT. Bullion hit a record high of $2,790.15 on Thursday.

U.S. gold futures were flat at $2,747.80.

Uncertainty this week could benefit gold, as delays in the election result or a split control of the House and Senate might drive safe-haven flows, pressing gold rates higher, stated Tim Waterer, chief market expert at KCM Trade.

The U.S. presidential election is on Tuesday, with opinion surveys too close to call a winner in between Democratic candidate Kamala Harris and Republican Politician Donald Trump.

The U.S. dollar has actually lost some traction to begin the week, which has left the door open for gold to grind greater, Waterer said.

The dollar index was down 0.5%, holding near a. near 2-week low hit in the previous session. A weaker dollar. makes gold more attractive for other currency holders.

Market focus is also on the Fed's rate of interest choice and. Chair Jerome Powell's remarks on Thursday.

Presently, traders prepare for a 98% chance of a. quarter-point rate cut this week, the CME FedWatch tool showed.

Gold is thought about a safe financial investment during times of. financial and geopolitical chaos and it prospers in a low. rates of interest environment.

In China, the Standing Committee of the National Individuals's. Congress fulfills from Nov. 4-8, with markets extensively expecting the. approval of more fiscal stimulus steps. China is a crucial metals. customer.

Among other metals, spot silver rose 0.3% to $32.51. per ounce. It hit a more than 2-week low earlier in the session.

Platinum edged up 0.3% to $994.85 and palladium. climbed 0.8% to $1,106.75.

(source: Reuters)