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Gold climbs for fifth day as tight US race spurs haven demand
[SINGAPORE] Gold rose for a fifth day to trade near the highest level in almost a month as mounting anxiety ahead of next week's US presidential election spurred investors to seek out haven assets, with the latest polls showing Hillary Clinton's once-dominant lead over Donald Trump is withering.
Bullion for immediate delivery gained as much as 0.2 per cent to US$1,290.94 an ounce and was at US$1,290.18 at 9:25am in Singapore, according to Bloomberg generic pricing. On Tuesday, prices rose to US$1,291.98, the highest since Oct 4.
Gold fell last month amid expectations the Federal Reserve is poised to raise borrowing costs. While Fed policy makers conclude their November meeting later Wednesday, the odds of a hike are just 16 per cent, and the US election has become a greater concern.
The sense of unease in markets was fuelled by an ABC News/Washington Post tracking poll that placed Republican candidate Mr Trump one percentage point ahead of his Democratic rival.
"Market nerves increased with polls showing a tightening in the US presidential race and ahead of" the Fed's statement, Australia & New Zealand Banking Group Ltd wrote in a note on Wednesday.
"The latest polling shows that the race is tightening, with one key poll putting Trump ahead."