The price of gold hit a record high on Thursday and is heading for its best month in seven years on safe-haven demand ahead of the US presidential election, while investors await the report on the US inflation to get clues about the trajectory of interest rates.
Spot gold was steady at $2,786.89 an ounce, at 0254 GMT, after hitting a record $2,790.15 earlier in the session. Prices have firmed 6% for the month so far.
U.S. gold futures fell 0.1% to $2,797.80.
The November 5 US election has entered its crucial final phase, with opinion polls indicating a close fight to decide a winner between Republican former President Donald Trump and Democratic Vice President Kamala Harris.
“The rise in gold looks a lot like one of Trump's trades, or indeed a hedge against increased deficit spending in the United States,” said Kyle Rodda, financial markets analyst at Capital.com.
Investors will focus on core Personal Consumption Expenditure (PCE) data due at 1230 GMT. The core September PCE price index is expected to have risen 0.3%, following August's 0.1% gain.
“Traders want to buy gold whether it goes up or down, which has helped limit retracements and tighten consolidations. And its trend looks set to continue rising if PCE inflation is at 0.2% m/m or less,” said Matt Simpson, principal analyst at City Index.
Weekly jobless claims, due later in the day, and Friday's payrolls report are also on the radar.
Traders see a 96% chance that the Fed will cut short-term borrowing costs by a quarter point next week.
Bullion is considered a safe investment during economic and geopolitical uncertainties and thrives in a low interest rate environment.
Spot silver was down 0.3% at $33.68 an ounce, platinum was flat at $1,008.68 and palladium was down 0.6% at $1,141.00. All three metals are poised for a monthly gain.
Manufacturing activity in China, a key consumer of metals, increased in October for the first time in six months, according to an official survey of factories, supporting optimism among policymakers who believe recent stimulus measures will allow the economy to get back on track.
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