Gold prices held close to record highs on Tuesday, supported by uncertainty surrounding the upcoming U.S. presidential elections, as investors await key economic data for clues on the Federal Reserve’s interest rate path.
Spot gold rose by 0.5% to $2,755.42 per ounce as of 02:26 GMT. Prices reached an all-time high of $2,758.37 last Wednesday. U.S. gold futures also climbed 0.4% to $2,768.10 per ounce.
IG Market Strategist, Yeap Jun Rong, commented, “The period leading up to the upcoming U.S. election could continue to support gold as a hedge against market volatility, bolstered by a temporary pause in the U.S. dollar and Treasury yields overnight. While stronger economic data may prompt the Fed to be patient with easing, gold prices are expected to remain supported, with the rate hike expectation standing at 25 basis points in November.”
