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Gold holds steady as market awaits United States election outcome

Gold held consistent on Wednesday as financiers keenly awaited the outcome of a securely objected to U.S. presidential race.

Spot gold held its ground at $2,745.42 per ounce, as of 0218 GMT. Bullion struck a record high of $2,790.15 last Thursday.

U.S. gold futures edged 0.2% higher to $2,754.10.

Republican Donald Trump won 14 states in Tuesday's U.S. presidential election while Democrat Kamala Harris caught 4 states and Washington, D.C., Edison Research predicted, but crucial battlefield states were not likely to be called for hours or perhaps days.

It's 95% about the U.S. election today, with a 5% splash of the Federal Reserve to add a touch of spice, said Kyle Rodda, monetary market analyst at Capital.com.

Gold belongs of the Trump trade and in the long term ought to benefit from a Trump success, primarily due to the effects of substantial budget deficit however likewise since of possibly more unpredictable U.S. foreign policy, said Rodda.

Traders are also waiting for the Fed's two-day policy conference, which concludes on Thursday, and Chair Jerome Powell's remarks for further direction.

Markets broadly anticipate the Fed to announce a quarter-point rate cut this week after the September decrease.

While markets expect a 25-bp cut this week, the Fed might avoid a dovish tone due to the inflationary impact of Trump's. policies, said Matt Simpson, senior analyst at City Index.

Gold is considered a hedge against geopolitical and economic. unpredictabilities and tends to thrive in a low-interest-rate. environment.

U.S. trade deficit surged to the greatest in nearly. 2-1/2- years in September, information released on Tuesday showed.

Elsewhere, Perth Mint reported a decline in October gold. sales, while silver sales slipped to their most affordable in four. months.

Spot silver fell 0.53% to $32.49 per ounce, platinum. shed 0.6% to $993.45 and palladium was down 2.17%. to $1,052.25.

(source: Reuters)