Gold prices remained stable as the market prepared for a tight U.S. presidential election and an upcoming Federal Reserve rate decision later this week. The uncertainty surrounding Tuesday’s vote has supported gold in recent weeks, with investors viewing the precious metal as a safe haven. A victory by Donald Trump could drive gold prices higher, as his plans for significant trade tariffs might increase inflationary pressures. However, the close nature of the race means the final outcome may not be known for several days.
Gold has risen by nearly a third this year, currently trading about $50 per ounce below last week’s record high. The metal has benefited from easier monetary policy, sustained central-bank purchases, and growing geopolitical tensions. The Federal Reserve is expected to cut interest rates by a quarter-point on Thursday, with other major central banks likely to follow suit, keeping borrowing costs low.
As of 8:28 a.m. in Singapore, spot gold held steady at $2,736.61 an ounce. The Bloomberg Dollar Spot Index showed little movement after a 0.4% drop on Monday. Meanwhile, silver, palladium, and platinum experienced slight declines, reflecting a cautious market tone.