Investing.com– Gold prices rose in Asian trading Monday, remaining within sight of record highs, as anticipation of a close presidential election and an upcoming Federal Reserve meeting kept safe-haven demand alive at a high level.
The yellow metal was also supported by dollar weakness after significantly weaker-than-expected nonfarm payrolls data last week, which strengthened the case for further interest rate cuts from the Fed.
Nevertheless, the yellow metal has moved away from its recent record highs, mainly due to profit-taking at the end of October.
The rose 0.2% to $2,741.31 an ounce, while the December expiry settled at $2,750.40 an ounce at 11:56 p.m. ET (04:56 GMT).
Trump and Harris neck and neck as elections approach
Recent polls have shown that Donald Trump and Kamala Harris are largely neck and neck in the upcoming election, with voting scheduled for this Tuesday.
The focus is on the seven key states that are likely to decide the direction of the election. Recent polls have shown that Ms. Harris has a strong base of female supporters, while Mr. Trump is mostly favored by young white men.
Gold supported by dollar weakness ahead of Fed meeting
In addition to pre-election safe haven demand, gold was also supported by recent declines in the , with the greenback falling from its highest level in three months after the release of disappointing data for the , last week.
The US jobs market barely grew in October, with downward revisions over the past two months indicating a cooling of the employment sector.
This trend should prompt the Fed to cut interest rates. The central bank is expected to announce one later this week, although its plans for future rate cuts remain uncertain.
Gold benefits from falling rates because it reduces the opportunity cost of investing in non-earning assets.
