Gold is trading somewhat weak early on Tuesday as markets cautiously wait for the outcome of the presidential elections in the US due later in the day. At the time of writing, GOLD is trading at a little above $1,892.

The uncertainty on what the result could be remains high, keeping traders hesitant from making any moves in the market for now. Meanwhile, gold prices have also come under pressure as the US dollar makes gains to trade close to a one-month high amid the uncertainty.

While most opinion polls have forecast a victory for Democrate Joe Biden, there is an increasing likelihood that it will be a closely contested election or could even deliver an inconclusive result. While a victory for Biden could send gold prices higher, a victory for Trump could weaken the yellow metal as the fiscal stimulus package could get further delayed if Trump comes back to power.

Meanwhile, gold remains supported by the continuing increase in coronavirus infections across several countries, which has prompted some governments to announce fresh lockdown measures and restrictions. This could further damage the economy and delay any possible recovery in the aftermath of the pandemic.