Gold Holds Near Record as US Election Jitters Drive Haven Demand
Gold traded near a record, boosted by haven demand before the US election and shrugging off data that could influence the size of Federal Reserve rate cuts this year.
Bullion was steady near $2,787 an ounce, a few dollars below Wednesday’s all-time high. While higher-than-expected US jobs data and robust GDP figures saw traders trim bets on the size of interest-rate cuts by the US central bank, it remains on track to implement more monetary easing at its meeting next week. Lower borrowing costs tend to benefit the precious metal, as it doesn’t pay interest.
Gold has surged by more than a third this year, supported by central-bank buying and haven demand amid conflicts in the Middle East and Ukraine. The tight US presidential race between Kamala Harris and Donald Trump is also creating uncertainty that’s underscoring bullion’s role as a place of safety for investors.
Still, the Nov. 5 election is seen as a major risk event for the precious metal, which could open gold up to a correction of more than $100 an ounce, according to Ole Hansen, head of commodity strategy at Saxo Bank A/S.
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Spot gold was little changed at $2,787.02 an ounce at 8:15 a.m. in Singapore, after reaching a record-high of $2,790.02 in the previous session. The Bloomberg Dollar Spot Index was steady. Silver was flat, while palladium and platinum declined.
Source : Bloomberg
