Gold inches lower as investors await US election outcome
[BENGALURU] Gold prices edged down on Tuesday, as cautious investors awaited the outcome of the US presidential election with President Donald Trump closely trailing Democrat Joe Biden in national opinion polls.
Spot gold were down 0.1 per cent at US$1,892.52 per ounce by 3.53am GMT.
US gold futures were little changed at US$1,892.00 per ounce.
"Sentiment is hanging by a thread at the moment... Everybody is quite unsure where the election is headed to, given the number of possible outcomes," said Howie Lee, economist at OCBC Bank.
As long as there isn't a Democrat sweep, there will be questions on fiscal stimulus, while an uncertain or contested result will likely favour the dollar and weaken gold, he added.
Election polls show Mr Biden with an outright majority nationally but the race between both him and Republican candidate Mr Trump remains closer in several battleground states.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Analysts say a Biden win could help the bullion rally with his plans to inject a potentially large stimulus aid.
The fact that there isn't a new fiscal stimulus is holding gold back and it may not happen if Mr Trump gets re-elected because it will take time to negotiate with the Democrats and it will just be drawn out, said ED&F Man Capital Markets analyst Edward Meir.
Gold, which is seen as a hedge against inflation and currency debasement, has gained over 24 per cent so far this year on unprecedented stimulus measures.
Meanwhile, two major state-owned Chinese banks warned on Monday that they could restrict trading of precious metals and foreign exchange products if the US election fuels market volatility.
Also on investor's minds, the Federal Open Market Committee (FOMC) will begin its two-day meeting on Wednesday, with policymakers expected to keep interest rates unchanged.
Silver were little changed at US$24.03 per ounce.
Platinum fell 0.2 per cent, to US$856.71 and palladium gained 0.9 per cent to US$2,231.90.
REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
India's Vedanta misses Q4 profit estimates on lower prices
BHP targets Anglo American in bid valuing miner at US$39 billion
China's Sinopec charts global expansion with refinery in rival India's backyard
Gold trades in tight range as market focuses on US economic data
Oil settles lower as US business activity cools, concerns over Middle East ease
Orsted says Taiwan wind project to power TSMC on track for 2025 finish