Gold prices showed minimal movement on Monday as investors held back in anticipation of the approaching U.S. presidential election and the Federal Reserve’s decision on interest rates. Spot gold held steady at $2,734.79 per ounce by 0831 GMT, remaining close to last Thursday’s record high of $2,790.15. Meanwhile, U.S. gold futures edged down by 0.2% to settle at $2,744.30.
The U.S. presidential election is set for Tuesday, with opinion polls indicating a close race between Democratic candidate Kamala Harris and Republican candidate Donald Trump. Giovanni Staunovo, an analyst from UBS, commented that this week’s primary driver for gold would be the election rather than the Fed’s interest rate decision. According to Staunovo, the central bank’s anticipated quarter-point cut is likely to align with market expectations, thus having limited immediate impact on the gold market. He suggested that a Trump victory could push the price of gold towards a target of $2,900 more quickly, while a win for Harris might cause a temporary decline in prices.
The Federal Reserve’s rate decision, alongside statements from Fed Chair Jerome Powell, is scheduled for Thursday. Current estimates, supported by the CME FedWatch tool, indicate a near-certain chance of a quarter-point cut in interest rates.
Gold has seen a substantial rise of 33% this year, reaching several record highs. The metal is widely regarded as a safeguard against economic and political volatility and generally performs well in a low-interest-rate environment. The dollar index, which reflects the dollar’s value against other major currencies, was down by 0.5% on Monday, marking a two-week low. A weaker dollar often boosts demand for gold priced in dollars, as it becomes more attractive to buyers using other currencies.
In other markets, spot silver rose by 0.7% to $32.65 an ounce after hitting a two-week low of $32.26. Platinum gained 0.7%, moving to $999.60 per ounce, while palladium saw a 0.8% increase, reaching $1,106.60. In China, a key consumer of metals, the National People’s Congress Standing Committee is meeting from 4-8 November, with expectations of new fiscal stimulus measures potentially influencing the global metals market.
London-listed company KEFI Gold and Copper plc (LON:KEFI) is an exploration and development company focused on gold and copper deposits in the highly prospective Arabian-Nubian Shield. The Company operates in Ethiopia and Saudi Arabia with projects including Tulu Kapi project, Jibal Qutman EL and Hawiah.
