Gold Steadies as Market Braces for US Election and Fed Meeting
Gold was little changed on Monday as traders prepare for a week that will see a US presidential election and a Federal Reserve rate decision.
Bullion was near $2,740 an ounce, just shy of the latest all-time high hit last week. A flurry of polls released Sunday show Vice President Kamala Harris and former President Donald Trump remain poised for a photo finish.
Meanwhile, the Federal Reserve and many rich-world peers are widely expected to lower interest rates again in the coming week. Lower rates are often seen as supportive for gold, which doesn’t pay interest.
Gold has surged by more than 30% so far this year, supported by expectations of Fed rate cuts, central-bank buying and haven demand amid conflicts in the Middle East and Ukraine. Uncertainty around the tight US presidential race has also supported the yellow metal.
“We believe gold’s positive momentum will continue in the short to medium term,” with the macro backdrop likely to remain favorable as interest rates decline and foreign-reserve diversification continues amid geopolitical tensions,” said Ewa Manthey, commodities strategist at ING Bank NV.
“These drivers are likely to continue regardless of who wins the presidential election,” she added. “They could, however, be heightened with Trump in the White House — at least in the short to medium term.”
Spot gold rose 0.1% to $2,740.31 an ounce at 12:30 p.m. in London. The Bloomberg Dollar Spot Index edged lower, as did the US 10-year Treasury yield. Palladium was little changed, while platinum and silver climbed.
Source : Bloomberg
