Gold prices rose as markets assessed President Joe Biden's decision to withdraw from the presidential race, raising new questions about whether the move will help or hinder Donald Trump's chances of returning to the White House.
Gold prices rose as much as 0.5% in early Asian trading, as the metal benefited from safe-haven appetite amid growing uncertainty over the turbulent U.S. election campaign. Biden has said he will complete his term but has endorsed Vice President Kamala Harris to replace him as the Democratic nominee.
The dollar’s decline as markets opened on Monday also supported gold, with traders likely leaning toward the idea that Trump — if elected — would push for a weaker U.S. currency. A stronger dollar is typically negative for bullion priced in dollars.
Gold hit a record high last week, having found support this year on growing bets that the Federal Reserve will focus on monetary easing. Low interest rates are usually positive for gold, since it doesn’t pay interest.
Spot gold rose 0.5% to $2,411.33 at 6:57 a.m. in Singapore. The Bloomberg Dollar Spot Index fell 0.2%, while silver prices rose.
