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PRECIOUS-Gold steady as investors brace for U.S. elections

Published 2020-11-02, 08:49 p/m
© Reuters.
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Nov 3 (Reuters) - Gold prices were little changed on Tuesday, after rising nearly 1% in the previous session, as caution set in ahead of the U.S presidential elections.

FUNDAMENTALS

* Spot gold XAU= was little changed at $1,892.51 per ounce by 0123 GMT

* U.S. gold futures GCv1 were also little changed at $1,893.00 per ounce.

* Election polls show Democrat candidate Joe Biden with an outright majority nationally but the race between both Biden and president Donald Trump remains closer in several battleground states. The Federal Open Market Committee (FOMC) will begin its two-day meeting on interest rate policy on Wednesday, with policymakers expected to reaffirm its commitment to support the pandemic-struck economy and keep interest rates unchanged. Gold, which is seen as a hedge against inflation and currency debasement, has gained over 24% so far this year on unprecedented stimulus measures and expectations for inflation due to it.

* The dollar index .DXY dipped 0.1% against a basket of currencies, having hit a one-month high on Monday. USD/

* Italy will tighten COVID-19 restrictions amid surging cases, hospital admissions and deaths, while reports showed new pandemic cases hit record highs last week in the United States. More than 46.62 million people have been reported to be infected by the novel coronavirus globally. U.S. manufacturing activity accelerated more than expected in October, with new orders jumping to their highest level in nearly 17 years. Holdings in the SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, fell 0.14% to 1,255.92 tonnes on Monday from 1,257.67 tonnes on Friday. Silver XAG= fell 0.3% to $23.97 an ounce. Platinum XPT= dropped 0.3% to $856.04 and palladium XPD= gained 0.2% to $2,216.45.

DATA/EVENTS (GMT)

0330 Australia RBA Cash Rate

Nov 1500 US

Factory Orders MM Sept

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