Spot Gold revisits record levels ahead of election outcome

Spot Gold edged higher on Tuesday, while revisiting the record high area just above the $2,750 mark, as market focus again sets on a vast US data string this week, including job openings, employment growth, advance Q3 GDP estimate and PCE inflation.

The uncertainty surrounding next week’s US presidential election also lent support to the precious metal.

“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,” IG market strategist Yeap Jun Rong was quoted as saying by Reuters.

“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.”

All these data prints and political events precede the Federal Reserve’s November 6th-7th policy meeting.

Markets are now pricing in about a 97% chance of a 25 basis point rate cut at the Fed’s November meeting.

Lower interest rates reduce the opportunity cost of holding Gold, which pays no interest.

As of 8:13 GMT on Tuesday Spot Gold was edging up 0.36% to trade at $2,752.12 per troy ounce.

The current all-time high for Gold stands at $2,758.52 per troy ounce.

Gold Futures for delivery in December were up 0.24% on the day to trade at $2,762.50 per troy ounce.