Spot gold was 0.3 per cent higher to $2,748.64 per ounce, just short of a record high of $2,758.37 reached last Wednesday
Gold prices hovered near all-time high levels on Tuesday, aided by U.S. election uncertainty and expectations of an interest rate cut by the U.S. Fed in November, while focus was also on a series of economic data.
Spot gold was 0.3 per cent higher to $2,748.64 per ounce as of 1031 GMT, just short of a record high of $2,758.37 reached last Wednesday.
U.S. gold futures added 0.2 per cent to $2,760.80.
Gold bulls seem to be taking advantage of the recent pause in the U.S. dollar’s and yields ascent, while still enjoying the tailwinds from Fed rate cut expectations and U.S. election risks, according to Han Tan, chief market analyst at Exinity Group.
Gold should retain its upward bias and may even flirt with $2,800 in the days ahead, as long as U.S. election risks continue weighing on market sentiment while Fed rate cut expectations remain intact, Tan said.
With the Fed’s rate decision due on November 7, investors will be scrutinizing U.S. job openings at 1400 GMT, ADP employment on Wednesday, U.S. PCE on Thursday, and payrolls report on Friday to gauge their influence on the U.S. central bank’s move.
Markets are pricing in nearly 96 per cent probability of a 25 bp rate cut by the Federal Reserve, as per CME’s FedWatch Tool.
Bullion thrives in a low interest rate environment and is considered a hedge against political and economic uncertainty.
Competition between Republican Donald Trump and Democrat Kamala Harris remains tight ahead of the November 5 U.S. presidential election.
Spot silver was 1.1 per cent higher to $34.06 per ounce and platinum gained 1.4 per cent to $1,047.84.
