GOLD prices held steady on Monday (Nov 4), as investors prepared for a crucial week for the global economy, marked by the US presidential election and the likelihood of further interest rate cuts.
Spot gold edged up by 0.1 per cent to US$2,738.29 per ounce, as at 0012 GMT. Bullion hit a record high of US$2,790.15 on Thursday.
US gold futures were flat at US$2,747.50.
With Tuesday’s US 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 per cent chance of a quarter-basis-point Fed rate cut this week, the CME FedWatch tool showed.
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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 US 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 per cent to 888.63 tonnes on Friday.
Spot silver rose 0.4 per cent to US$32.5443 per ounce, platinum edged down by 0.1 per cent to US$991.72 and palladium added nearly 1 per cent to US$1,108.36. REUTERS
