Gold prices rose during trading on Tuesday, October 29, amid political uncertainty in America in anticipation of the start of the elections, in addition to anticipation of the US Federal Reserve meeting.
In terms of trading, gold futures rose by about 0.3% to $2,763.1 per ounce.
Markets are awaiting the US Federal Reserve meeting next week, which is expected to witness a rate cut. This week, markets are awaiting a set of data that is expected to affect the Federal Reserve’s expected decision, most notably the monthly jobs report scheduled for release on Friday.
According to the CME Group's FedWatch tool, markets are pricing in a 98% chance of a 25 basis point rate cut by the Fed.
It is worth noting that low interest rates lead to a lower opportunity cost of holding gold, which is also viewed as a safe asset during times of economic and political turmoil.
Regarding developments in the Middle East, two Lebanese security sources and the mayor of the city of Baalbek told Reuters that at least 60 people were killed and dozens wounded in Israeli strikes on the Bekaa Valley in eastern Lebanon.
The run-up to the upcoming US elections may continue to provide momentum for gold's status as a hedge against market turmoil, supported by the temporary pullback in the dollar and Treasury yields overnight, IG market strategist Yip Jun Rong said in comments reported by Reuters.