Gold on High Alert: Will the Fed’s Rate Decision Send Prices Soaring or Plummeting

Investing.com – Gold prices moved slightly in Asian markets today after posting losses in the last session. Because of the prediction of the US presidential election. And the Fed meeting made investors remain cautious.

Gold was hit by profit taking last week. Especially after data showed the strength of the US economy. As a result, bets on interest rate cuts have fallen.

However, gold remains close to the all-time highs reached in October. As political uncertainty increases, it is likely to attract more demand for safe assets.

It was steady at $2,736.26 an ounce, while December futures were steady at $2,744.95 an ounce at 1:55 pm (GMT+7).

Gold prices stabilize ahead of the US presidential election

Spot gold prices remain close to the record high of $2,790.41 an ounce reached in October. This is because the demand for the safe haven gold asset continues despite the losses of the last session.

Donald Trump and Kamala Harris are preparing to face off in an intense presidential election. The results of the latest survey show that competition is close. It focuses on seven key battleground states that are likely to determine the direction of the election. Voting will begin today.

Keep an eye on the Fed meeting for signs of further interest rate cuts.

In general, gold and precious metals prices continue to be pressured by some dollar strength. After the dollar was stable in the last session. And the market is also keeping an eye on the US Federal Reserve meeting. which will happen this week

The Fed is expected to be 50 basis points lower than it was in September, but expectations for future rate cuts will also be cautiously guarded. Especially when recent data shows the strength of the US economy. and inflation is still high

But data on Friday showed a cooling in the labor market. This is a trend that could give the Fed an incentive to cut interest rates further.

Lower interest rates will have a positive effect on the metals market. This is because it reduces the opportunity cost of investing in assets that have no return.

Among other precious metals, it remained steady at $991.65 an ounce, while still steady at $32.595 an ounce.

Among industrial metals, the London Metal Exchange rose 0.7% to $9,748.50 a tonne, while those due in December rose 0.8% to $4.4663 a pound.

Copper was supported by expectations that China, the world’s largest copper importer, will give signs of additional economic stimulus. China’s National People’s Congress began its four-day session on Monday. It is widely expected that the NPC intends to increase fiscal stimulus.