Spot gold rose by 0.1% to $2,738.32 per ounce, while U.S. gold futures were flat at $2,747.80
Gold held steady on Monday as investors prepared for a key week ahead of the U.S. presidential election and the likelihood of another rate cut by the Fed.
Spot gold rose by 0.1% to $2,738.32 per ounce, as of 0227 GMT. Bullion reached 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 outcome or a split control of the House and Senate might drive safe-haven flows, pushing gold prices higher, according to Tim Waterer, chief market analyst at KCM Trade.
The U.S. presidential election is on Tuesday, with opinion polls too close to call a winner between Democratic candidate Kamala Harris and Republican Donald Trump.
The U.S. dollar has lost some traction to start the week, which has left the door open for gold to grind higher, he added.
The dollar index was down 0.5%, holding close to a near 2-week low touched in the earlier session. A softer dollar makes gold more appealing for other currency holders.
Market focus is also on the Federal Reserve’s interest rate decision and Chair Jerome Powell’s remarks on Thursday.
Currently, traders anticipate a 98% probability of a quarter-point rate cut this week, according to the CME FedWatch tool.
Gold is considered a safe investment during times of economic and geopolitical turmoil and it thrives in a low interest rate environment.
In China, the Standing Committee of the National People’s Congress meets from November 4-8, with markets widely expecting the approval of more fiscal stimulus measures. China is a key metals consumer.
Among other metals, spot silver gained 0.3% to $32.51 per ounce. It reached a more than 2-week low earlier in the session.
