Gold prices rose ahead of the U.S. elections and the Federal Reserve’s policy decision.
A Fed rate cut is unlikely to trigger significant movement as the central bank is expected to signal further cuts in line with expectations.
Gold prices rose on Monday as investors exercised caution ahead of the U.S. presidential election and the Federal Reserve’s upcoming decision on interest rates.
Spot gold increased by 0.1% to $2,737.35 per ounce, after reaching a record high of $2,790.15 on Thursday. U.S. gold futures edged down 0.1% to $2,746.20 per ounce. This week, the election is expected to be the primary driver for gold.
A Fed rate cut is unlikely to trigger significant movement, as the central bank is expected to signal further cuts in line with market expectations. Analysts believe a Trump victory would bring gold closer to the $2,900 per ounce target, while a Harris win might lead to a temporary drop in gold prices.
The Fed’s rate decision and statements from its chair, Jerome Powell, are scheduled for Thursday. Traders currently see a near 100% probability of a quarter-point cut, according to CME’s FedWatch tool.
In other precious metals, spot silver rose 0.1% to $32.47 per ounce after hitting a two-week low of $32.26. Platinum fell 1% to $982.75, while palladium dropped 1.8% to $1,077.72.
Copper prices also saw gains on Monday, with benchmark copper on the London Metal Exchange (LME) climbing 1.1% to $9,679 per ton, after peaking at $9,723.50 earlier in the session, marking a two-week high.
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