Mumbai, 29 Oct (Commoditiescontrol): Gold prices remained close to record highs on Tuesday, bolstered by investor concerns over the approaching U.S. presidential election and anticipation of key economic data that could hint at the Federal Reserve's next move on interest rates.
Spot gold rose 0.5% to $2,755.42 per ounce, edging near last week’s record high of $2,758.37. U.S. gold futures gained 0.4%, reaching $2,768.10.
According to an IG market strategist, gold is likely to retain its appeal as a hedge against market volatility leading up to the U.S. election. This sentiment was further supported by a dip in the U.S. dollar and Treasury yields overnight, providing temporary support to gold prices.
Upcoming economic data, including U.S. job openings, ADP employment, and the Personal Consumption Expenditures report, will shape market expectations as the Federal Reserve’s rate decision approaches on Nov. 5, just days before the election. Markets are strongly anticipating a modest 25-basis-point rate cut, with CME’s FedWatch Tool showing a 98% probability.
Lower interest rates typically benefit gold by decreasing the opportunity cost of holding the non-yielding asset, especially in uncertain economic or political climates.
In other metals, spot silver gained 1.2% to $34.09 per ounce, while palladium and platinum rose by 1.4% and 0.8%, respectively. Meanwhile, geopolitical tensions in the Middle East escalated, with Israeli strikes on Lebanon's Bekaa Valley resulting in at least 60 casualties, according to local officials and security sources.
(By Commoditiescontrol Bureau: 09820130172)
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