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Gold holds ground ahead of US election and Fed interest rate choice

Gold costs were little bit changed on Monday as investor care prevailed ahead of the U.S. governmental election and looming Federal Reserve decision on rate of interest.

Area gold held its ground to stand at $2,734.79 an ounce at 0831 GMT, having actually hit a record high of $2,790.15 last Thursday.

U.S. gold futures were down 0.2% at $2,744.30.

The U.S. presidential election is on Tuesday, with opinion polls revealing Democratic candidate Kamala Harris and Republican Politician Donald Trump neck and neck.

The chauffeur for gold this week will be the U.S. election. The Fed cut is unlikely to trigger much motion in my view, as the bank is likely to signify further cuts in line with market expectations, said UBS expert Giovanni Staunovo.

Our company believe a Trump victory would bring the gold cost closer to our $2,900 per ounce target more quickly, while a. Harris win could see gold temporarily dropping.

The U.S. central bank rate decision and Chair Jerome. Powell's remarks are due on Thursday. Traders offer near to a. 100% opportunity of a quarter-point rate cut, the CME FedWatch tool. programs.

Bullion has gotten 33% this year and struck multiple record. peaks along the way. It is typically viewed as a hedge against. cost-effective and political unpredictability and tends to do well when. rates of interest are low.

The dollar index was down 0.5%, hitting a two-week. low. A weaker U.S. currency makes dollar-priced gold more. appealing for purchasers holding other currencies.

In top metals customer China, the Standing Committee of the. National People's Congress fulfills over Nov. 4-8, with markets. commonly anticipating the approval of more financial stimulus.

Among other metals, spot silver rose 0.7% to $32.65. an ounce after touching a more than two-week low at $32.26.

Platinum acquired 0.7% to $999.60 while palladium. firmed by 0.8% to $1,106.60.

(source: Reuters)