US election uncertainty, rate cut bets pin gold near record levels

Reuters

US election uncertainty, rate cut bets pin gold near record levels

8:58 sáng giờ GMT, 29 Tháng 10 2024

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Gold may touch $2,800 in coming days - analyst

U.S. job openings at 1400 GMT

Traders see a 95% chance of a 25 bps U.S. rate cut in November

Palladium hits 10-month high

Updates as of 1114 GMT

By Anushree Mukherjee

Oct 29 (Reuters) -Gold prices hovered near all-time high levels on Tuesday, aided by U.S. election uncertainty and expectations of an interest rate cut by the U.S. Federal Reserve in November, while focus was also on a series of economic data.

Spot gold XAU= was up 0.3% to $2,750.87 per ounce as of 1114 GMT, just shy of a record high of $2,758.37 hit last Wednesday.

U.S. gold futures GCv1 gained 0.3% to $2,763.40.

"Gold bulls appear to be taking advantage of the recent pause in the U.S. dollar's and yields ascent, while still enjoying the tailwinds from Fed rate cut expectations and U.S. election risks," said Han Tan, chief market analyst at Exinity Group.USD/US/

"Gold should retain its upward bias and may even flirt with $2,800 in the days ahead, as long as U.S. election risks continue weighing on market sentiment while Fed rate cut expectations remain intact."

With the Federal Reserve's rate decision due on Nov. 7, investors will be scrutinizing U.S. job openings at 1400 GMT, ADP employment on Wednesday, U.S. Personal Consumption Expenditures on Thursday, and payrolls report on Friday to gauge their influence on the U.S. central bank's move.

Markets are pricing in about 95% chance of a 25-basis-point rate cut by the Fed in November, according to CME's FedWatch Tool.

Bullion thrives in a low interest rate environment and is considered a hedge against political and economic uncertainty.

Competition between Republican Donald Trump and Democrat Kamala Harris remains tight ahead of the Nov. 5 presidential election.

From the technical point of view, the Relative Strength Index currently at 69 suggests that the gold price is approaching the "overbought" territory, starting at 70.TECH/C

Spot silver XAG= was up 1.3% to $34.13 per ounce and platinum XPT= rose 1.8% to $1,051.25.

Palladium XPD= rose 1.4% to $1,236.00, after hitting a 10-month high on concerns over sanctions on top producer Russia.

Spot gold RSI at 69 https://tmsnrt.rs/48xHIy8

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

Reporting by Anushree Mukherjee in Bengaluru; editing by Mrigank Dhaniwala and Jason Neely

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