Gold edged higher on Thursday in response to a lower dollar and also uncertainty about the outcome of a tight US presidential race. Democrat Hillary Clinton maintained her narrow lead over Republican rival Donald Trump just days ahead of the November 8 election, according to two polls released on Thursday. Global equity prices, rattled by worries about the US presidential election, steadied while the US dollar was down around 0.3 percent against a basket of six main currencies.
"Risk-off sentiment has helped gold above $1,300 yesterday ... and as long as uncertainty around the outcome of US elections continues, we can see support," Saxo Bank head of research Ole Hansen said.
Spot gold, lower initially, rose 0.4 percent to $1,302.17 an ounce by 2:52 pm EDT (1852 GMT), remaining below Wednesday's one-month high of $1,307.76. US gold futures settled down 0.4 percent at $1,303.30 per ounce. "Given the recent moves in the polls and the commensurate improving chances of (Republican Donald Trump) winning according to major forecasters, the possibility of a Trump presidency, which is gold-positive according to the market given likely changes in global investor risk appetite, has been priced back in, at least partially contributing to gold's recent rise," said RBC Capital Markets in a note.
Among other precious metals, silver fell 0.7 percent at $18.32 an ounce, retreating from a high of about $18.73 on Wednesday, its best level since October 4. Platinum was up 0.8 percent at $994.75 and palladium dropped 1.9 percent at $616.50.
Comments
Comments are closed for this article.