Early on Friday, gold prices have dipped lower on account of a stronger dollar, even though markets are trading cautiously in anticipation of the results of the US presidential election. At the time of writing, GOLD is trading at a little above $1,938.

During the previous session, gold prices had soared 2.4% higher – their best performance since early April, as trends pointed to a victory for Biden. So far this week, the yellow metal has gained around 3.5% of its value, marking the highest weekly gains since late July.

Meanwhile, President Trump threatened legal action against counting of votes in certain states, looking all set to add to the uncertainty in the markets by raising doubts on the integrity of the elections. This has soured the mood in global financial markets and boosted the safe haven appeal of gold.

However, the sentiment also served to support the US dollar as a safe haven currency, keeping gains in gold under check as a result. Apart from the US elections, the precious metal also enjoys support from the BOE increasing the scope of its bond purchase program and the Fed committing to keep its monetary policy loose in the coming months to offset the economic damage due to the coronavirus pandemic.