Gold Nears Record With Focus on Key US Data and Election Endgame
Gold advanced toward a record as traders prepared for key data that will help to set the stage for the next Federal Reserve policy decision, while the countdown to the US presidential election continued.
Bullion climbed above $2,756 an ounce as investors waited for inflation and payroll figures this week, with the reports set to show underlying resilience in the economy and a hiccup in the labor market after two hurricanes likely impacted jobs growth. Economists still expect policymakers to cut rates by a quarter percentage point at their Nov. 6-7 meeting. Lower borrowing costs are typically negative for the non-yielding metal.
Gold has surged by about a third this year, notching a record high just below $2,760 last week, on central-bank buying and sustained haven demand. With the US presidential election between Kamala Harris and Donald Trump too tight to call, bullion has managed to post a run of three consecutive weekly gains even as Treasury yields have been pushing higher, a shift that can at times be a headwind for the commodity.
Money managers have played their part, with hedge funds raising net-long positions in gold and investors adding to exchange-traded fund holdings.
Spot gold was 0.5% higher at $2,756.45 an ounce at 10:32 a.m. in Singapore. The Bloomberg Dollar Spot Index was steady. Silver rose more than 1% to top $34 an ounce, while palladium and platinum also gained.
Source : Bloomberg
