Gold prices fell as investors awaited the preliminary results of the closely contested US election, which could be of great significance to financial markets.
Bullion prices hit $2,708.56 an ounce in early Asian trading, as the White House race between Democrat Kamala Harris and Republican Donald Trump reached its conclusion.
Some investors have bet big on a Trump win in recent weeks. Trades tied to his pro-growth agenda have supported the dollar, which could hurt gold’s appeal by making it more expensive for buyers using other currencies.
However, the tension caused by the steep trade tariffs that Trump has vowed to impose could also prompt investors to rush to safe havens such as gold if he wins.
Gold and Bets on Trump's Victory
There are signs that some investors in the market are betting on a Trump win. Bond investors are rushing into deals that could benefit from a rise in Treasurys.
Gold prices have risen more than 30% this year in a record run supported by rising geopolitical and economic risks, prompting buying by central banks and consumers alike.
The rally has intensified in the past few months as the Federal Reserve has moved to cut interest rates and the election is approaching, helping bullion shake off traditional headwinds such as rising Treasury yields.
