Gold traded near record highs, supported by safe-haven demand ahead of the U.S. election and ignoring data that could influence the size of the Federal Reserve's interest rate cuts this year.
Gold prices settled near $2,787 an ounce, a few dollars below their all-time highs hit on Wednesday.
While stronger-than-expected U.S. jobs data and strong GDP numbers have led traders to scale back bets on the size of the Federal Reserve’s rate cuts, it remains on track to deliver more monetary easing at its meeting next week. Low borrowing costs are a positive for the non-yielding metal.
Gold prices have risen by more than a third this year, supported by central bank buying and safe-haven demand amid conflicts in the Middle East and Ukraine. The tight US presidential race between Kamala Harris and Donald Trump is also creating uncertainty, underscoring bullion’s role as a safe haven for investors.
However, the November 5 election is seen as a high-risk event for gold, which could see a correction of more than $100 an ounce, according to Ole Hansen, head of commodity strategy at Saxo Bank.
Spot gold was little changed at $2,787.02 an ounce at 8:15 a.m. in Singapore, after hitting a record high of $2,790.02 in the previous session. The Bloomberg Dollar Spot Index was flat. Silver prices were steady, while palladium and platinum fell.
