Gold steadies as investors brace for US election and potential rate cuts
Mon Nov 04 2024
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.