Gold Holds Steady Ahead of US Vote

6 Nov 2024 , 10:26 AM

Wednesday saw sluggish gold prices as investors moved their attention to the Federal Reserve’s next meeting and refrained from making large holdings until the outcome of the U.S. election was known.

In a fiercely disputed presidential contest, millions of Americans voted on Tuesday; if crucial battleground states continue to be strongly contested, the final results may be postponed.

Meanwhile, early election returns showed that Kamala Harris had won Vermont and Donald Trump had won West Virginia, Indiana, and Kentucky, according to Edison Research.

Spot gold dropped 0.2% to $2,738.89 an ounce. Last Thursday, the price of bullion reached a record high of $2,790.15.

The price of U.S. gold futures dropped 0.1% to $2,747.80.

The Fed’s two-day meeting, which ends on Thursday, and Chair Jerome Powell’s remarks are also attracting traders’ attention.

The CME FedWatch tool indicates that traders have a 96% chance of seeing a 25 basis point rate cut this week.

Bullion tends to flourish in low-interest-rate environments and is regarded as a hedge against geopolitical and economic risks.

Businesses increased imports to satisfy strong domestic demand and in anticipation of greater duties on goods, causing the U.S. trade deficit to widen significantly in September, according to statistics released on Tuesday.

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