Gold Edges Down Even as Dollar and Yields Drop Ahead of U.S. Election and Fed Meeting
Gold edged lower midafternoon as traders turn cautious with the dollar and yields falling ahead of tomorrow's U.S. presidential election and this week's interest-rate decision from the Federal Reserve.
Gold for December delivery was last seen down US$3.00 to US$2,746.20 per ounce.
The rise comes ahead of Tuesday's U.S. election, with polls showing a tight race between Donald Trump and Kamala Harris, as the two candidates offer much different economic policies. Harris is expected to continue much of the Biden Administration's policies while Trump plans blanket tariffs on imports. A Democratic victory could be met with claims of cheating and political unrest that prompt safe-haven buying.
The Federal Reserve's policy committee will release its latest interest-rate decision on Thursday, with the group widely expected to follow its prior 50 basis point cut with a 25 basis point drop in rates.
The dollar was lower ahead of the vote, with the ICE dollar index last seen down 0.41 points to 103.87.
Treasury yields were lower, with the U.S. two-year note last seen paying 4.189%, down 3.5 basis points, while the yield on the 10-year note was down 7.9 basis points to 4.318%.
Source: MT Newswires
