- Gold prices stabilized in early trading globally, on Tuesday, as the market prepared for a US election that will witness a convergence between the candidates, and the Federal Reserve’s interest rate decision later this week.
- Spot gold was at $2,736.61 an ounce, with the Bloomberg Dollar Spot Index little changed after falling 0.4% on Monday, while silver, palladium and platinum prices fell.
- Uncertainty over Tuesday’s presidential vote has supported gold in recent weeks. A Donald Trump victory could send the precious metal higher, given his pledges to hike tariffs that could stoke inflation. However, the closeness of the race means the final outcome may not be known for days.
- The Federal Reserve and several central banks in rich economies are widely expected to cut interest rates again this week.
- Gold prices have risen by about a third this year and are about $50 an ounce below last week’s record high, supported by accommodative monetary policy, central bank buying and rising geopolitical tensions.
- The Federal Reserve is widely expected to cut interest rates by a quarter point on Thursday, with many of its peers in the developed world also likely to cut borrowing costs.
