As the US presidential election approaches on Tuesday, November 5 (November 6 in India), gold prices are experiencing fluctuations due to market uncertainty.
On Monday, November 4, gold futures fell by ₹485, bringing the price to ₹78,382 per 10 grams in Indian markets. This decline highlights the effects of global market trends as investors brace for potential changes in economic policy.
Internationally, gold futures decreased slightly by 0.08%, trading at $2,747 per ounce. Despite this minor drop, gold prices remain relatively stable as traders prepare for a critical week for the global economy.
Spot gold increased by 0.2% to $2,741.63 per ounce, following a record high of $2,790.15 reached on October 31. Meanwhile, US gold futures remained steady at $2,750.60 per ounce.
With growing uncertainty ahead of the elections, market analysts like Tim Waterer, chief market analyst at KCM Trade, believe that possible delays in election results or a divided Congress could lead to increased investment in gold as a safe haven, potentially driving prices higher.
Waterer commented, “The US dollar has lost some traction at the start of the week, which leaves the door open for gold to grind higher.”
Currently, the dollar index is down 0.5%, sitting near a two-week low. A weaker dollar generally makes gold more attractive to international investors, as it becomes cheaper in other currencies.
Traders are also watching the Federal Reserve’s interest rate decision closely, with nearly a 100% chance of a quarter-point rate cut expected this week.
Gold is often seen as a safe investment during times of economic instability and geopolitical tensions, performing well particularly in low-interest-rate conditions.
As the election nears, investors are paying close attention to how the results may affect gold prices in the weeks ahead.
Additionally, the market is focused on China, where the Standing Committee of the National People’s Congress is meeting from November 4 to 8. Analysts expect the approval of new fiscal stimulus measures, which could further impact global demand for gold, given China’s role as a major consumer of precious metals.
Related topics:
- Dubai: Gold Prices Surge to Record Highs on Diwali
- Toubani Resources Projects A$240 Million Annual Revenue from Mali Gold for Nine Years
- India Surpasses China in Gold Purchases, Buying 51% More in Three Months
