Gold traded in a tight range on Tuesday as investors avoided taking large positions ahead of the U.S. presidential election and the Federal Reserve's policy meeting later in the week.
Spot gold was down 0.1 percent at $2,733.39 an ounce by 0225 GMT. Bullion hit a record high of $2,790.15 last week.
U.S. gold futures fell 0.1% to $2,742.40.
Democratic candidate Kamala Harris and Republican candidate Donald Trump are nearly tied in opinion polls, leaving the outcome of the US presidential race uncertain and potentially unconfirmed for days after voting ends.
“Gold is likely to move higher regardless of who enters the White House because neither candidate seems opposed to the idea of not just maintaining spending but adding to it,” said Edward Meir, analyst at Marex.
Gold could fluctuate in the short term, but a target of $3,000 by 2025 seems achievable, especially with ongoing government spending, Meir said.
Market attention will also be focused on the Fed's interest rate decision scheduled for Thursday, as well as remarks from Chairman Jerome Powell and other officials.
According to the CME's FedWatch tool, markets are pricing in a quarter-point cut this week, which would be the second U.S. rate cut of the year.
“With markets fully pricing in the move, the widely expected move could potentially elicit little reaction from gold prices, with focus instead shifting to the future directions of policymakers,” said Yeap Jun Rong, market strategist at IG.
Gold, which is seen as a hedge against geopolitical uncertainties, tends to do well when interest rates are low.
In China, a top metals consumer, the Standing Committee of the National People's Congress meets Nov. 4-8, and markets expect new fiscal stimulus measures to be approved.
Spot silver was flat at $32.46 an ounce, platinum lost 0.1% to $982.50 and palladium rose 0.2% to $1,076.50.
Related News :