Gold steadies as investors brace for US election and potential rate cuts

Gold prices held steady on Monday, as investors prepared for a crucial week for the global economy, marked by the U.S. presidential election and the likelihood of further interest rate cuts.

FUNDAMENTALS

* Spot gold edged up by 0.1% to $2,738.29 per ounce, as of 0012 GMT. Bullion hit a record high of $2,790.15 on Thursday.

* U.S. gold futures were flat at $2,747.50.

* With Tuesday’s U.S. presidential election looming, opinion polls reveal a tight contest between Democratic candidate Kamala Harris and Republican Donald Trump, which could significantly influence bullion prices. * This week, market participants will pay close attention to the Federal Reserve’s interest rate cut decision and remarks from Fed Chair Powell and other Fed officials.

* Currently, traders anticipate a 98% chance of a quarter-basis-point Fed rate cut this week, the CME FedWatch tool showed.

* Gold is considered a safe investment during economic and geopolitical turmoil due to its ability to store value; it thrives in a low interest rate environment.

* Data on Friday showed that U.S. job growth nearly stalled in October as strikes in the aerospace industry reduced manufacturing jobs and hurricanes shortened the payroll collection period.

* On the physical front, gold demand in India jumped last week amid festival purchases, although volumes were lower than usual due to record-high prices.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.35% to 888.63 tonnes on Friday.

* Spot silver rose 0.4% to $32.5443per ounce, platinum edged down by 0.1% to $991.72 and palladium added nearly 1% to $1,108.36.

DATA/EVENTS (GMT) 0850 France HCOB Manufacturing PMI Oct 0855 Germany HCOB Mfg PMI Oct 0900 EU HCOB Mfg Final PMI Oct 1500 US Factory Orders MM Sept.

FOLLOW US ON GOOGLE NEWS

Read original article here

Denial of responsibility! Secular Times is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – seculartimes.com. The content will be deleted within 24 hours.

Leave a Comment