Gold prices hover near record peak on US election jitters

Reuters

Gold prices hover near record peak on US election jitters

2:54 sáng giờ GMT, 29 Tháng 10 2024

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At least 60 people killed in Israeli strikes on Lebanon

Gold hit a record high of $2,758.37 last Wednesday

Palladium hits over 10-month high

Updates prices throughout as of 0730 GMT

By Daksh Grover

Oct 29 (Reuters) -Gold prices lingered near record highs on Tuesday, supported by uncertainty surrounding the upcoming U.S. presidential election, while investors awaited data for clues on the Federal Reserve's interest rate trajectory.

Spot gold XAU= was up 0.4% to $2,753.66 per ounce as of 0730 GMT, just shy of a record high of $2,758.37 hit last Wednesday.

U.S. gold futures GCv1 gained 0.4% to $2,765.80.

"The lead-up to the upcoming U.S. elections may continue to offer traction for its status as a hedge against market turbulence, further supported by a temporary breather in the U.S. dollar and Treasury yields overnight," said IG market strategist Yeap Jun Rong.

"While stronger economic data may support more patience in Fed's easing process, we may expect gold prices to stay supported, with rate expectations well-anchored around a smaller 25 basis point in November."

With just eight days until the Fed's rate decision, investors are awaiting a series of critical events to gauge their influence on the U.S. central bank's move.

Data this week includes U.S. job openings at 1400 GMT, ADP employment on Wednesday, U.S. Personal Consumption Expenditures on Thursday, and payrolls report on Friday.

Then comes Nov. 5, when Americans go to polls to elect a new president.

Markets are pricing in about 99% chance of a 25 basis points rate cut by the Fed, according to CME's FedWatch Tool.

Lower rates reduce the opportunity cost of holding gold, which is also seen as a safe asset during times of economic and political turmoil.

Elsewhere, at least 60 people were killed and dozens wounded in Israeli strikes on Lebanon's eastern Bekaa Valley, two security sources and the mayor of Baalbek told Reuters.

Spot silver XAG= was up 0.8% to $33.95 per ounce and platinum XPT= rose 1.3% to $1,046.3.

Palladium XPD= added 0.8% to $1,227.68, after hitting a more than 10-month high of $1,234.55 earlier in the session.

Spot gold price in USD per oz https://reut.rs/3YkYc81

Reporting by Daksh Grover in Bengaluru; Editing by Subhranshu Sahu, Sherry Jacob-Phillips and Varun H K

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