US Elections and Gold Price

As the US prepares for a tense presidential election, gold prices are steadily rising in Asian trade and remain near record highs. Spot gold rose 0.2% to $2,741.31 an ounce, while December futures steadied at $2,750.40. The gains come despite recent profit-taking that has seen gold prices retreat from their recent peaks in late October.

The US election has created uncertainty among investors, leading to increased demand for safe-haven assets like gold. Recent polls show the candidates are neck and neck, particularly in key swing states that will likely determine the outcome of the election.

Fed’s Rate Cut Expectations

In addition to political tensions, economic indicators are playing a significant role in shaping market sentiment.

• Last week's nonfarm payrolls report revealed weaker-than-expected job growth in October, prompting speculation about future monetary policy adjustments.
• Job market showing signs of cooling and downward revisions for the prior two months.

Fed is expected to implement a 25 basis point rate cut in its upcoming meeting. Lower interest rates typically enhance the appeal of gold, as they reduce the opportunity cost associated with holding non-yielding assets.

The recent weakness in the dollar, which has fallen from three-month highs after weak payrolls data, is further supporting gold prices. A weaker dollar makes gold more accessible to investors in other currencies, thus supporting demand.

Precious Metals Prices

Gold's positive performance is also reflected in other precious metals.

• Platinum futures rose 0.4% to $1,006.75 an ounce,
• Silver futures rose 0.3% to $32.773 an ounce.

These metals are recovering from earlier profit-taking, which shows broader interest in precious metals amid ongoing economic uncertainty.

Industrial Metals and National People's Congress

On the industrial metals front, copper futures also rose, with benchmark prices up 0.9% to $9,637.50 an ounce.

As the world's largest copper importer, China's economic policies are closely watched: expectations surrounding the upcoming National People's Congress suggest that the Chinese government may increase fiscal spending. These actions are expected to boost copper demand, further supporting its price in the market.

Bottom Line

Investors are increasingly turning to safe-haven assets like gold, platinum, and silver, driving prices to near-record highs. The recent weakness in the US dollar and expectations of a Fed rate cut are further supporting gold's appeal. Meanwhile, the industrial metals market, particularly copper, is showing signs of recovery due to anticipated Chinese economic stimulus measures.