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Gold consistent as US election, Fed meeting loom

Gold rates held consistent on Tuesday as market participants braced for the outcome of a knifeedge U.S. governmental election and a Federal Reserve policy decision this week.

Area gold was steady at $2,739.00 per ounce by 0845 GMT, having actually hit a record high of $2,790.15 recently.

U.S. gold futures edged up 0.1% to $2,748.70.

Opinion polls suggest a neck-to-neck race in between Democratic prospect Kamala Harris and Republican Politician Donald Trump, casting a. cloud of unpredictability over the outcome of the U.S. governmental. election.

Gold traders and financiers are likely to keep their. responses up until early signals emanate from the U.S. presidential. race, said Han Tan, chief market analyst at Exinity Group.

Gold must increase if Harris wins, due to her policies. supporting low interest rates, but a sudden dollar spike could. lower gold's worth if Trump wins, Tan stated.

Gold needs to eventually claim the $2,800 handle as soon as the. dust settles after the U.S. election, Tan added.

Bullion, typically seen as a hedge against financial and. political risks, has gained 33% so far this year. It also tends. to prosper in a low-interest-rate environment.

The Fed's rate of interest decision is due on Thursday, along. with remarks from Chair Jerome Powell and other officials.

According to the CME FedWatch tool, markets widely anticipate a. quarter-point cut on Thursday, which would be the second U.S. rate reduction of the year after a jumbo cut in September.

With that fully priced in by markets, the mostly anticipated. move might potentially draw little response from gold rates, with. focus to focus on policymakers' forward guidance rather,. said IG market strategist Yeap Jun Rong.

Spot silver rose 0.4% to $32.59 per ounce, platinum. included 0.9% to $992.45 and palladium was up by 0.9%. to $1,084.18.

A private sector survey in leading metals customer China showed. services activity expanded at the fastest rate in 3 months. in October.

(source: Reuters)