SINGAPORE: Gold prices edged up in Asian trade on Monday as the dollar slipped off a two-month peak hit last week after political uncertainty accelerated ahead of the first presidential election debate between US President Donald Trump and his Democratic rival Joe Biden.
Spot gold was up 0.1% at $1,861.16 per ounce by 0703 GMT. US gold futures were down 0.3% at $1,861.60.
"Gold is going to be driven by the tenor of the US dollar," said Stephen Innes, chief market strategist at AxiCorp.
"The big move is going to probably occur after the presidential debate when we have a better read on where the polls are going to be sitting."
Investor focus will also be on a new fiscal support package after US House Speaker Nancy Pelosi said on Sunday a deal could be reached with the White House on a coronavirus relief package and that talks were continuing.
Global central banks and governments have released massive stimulus to prop up their economies from the impact of the Covid-19 pandemic, pushing gold more than 20% higher this year. However, prices have retreated by about 10% since hitting a record peak in August.
"We are more likely to see gold buyers chasing the market higher if $1,900 an ounce gets recaptured, than for them to load up at these price levels for now," said Jeffrey Halley, a senior market analyst at OANDA, in a note.
On the technical front, spot gold may break support at $1,855 per ounce, said Reuters technical analyst Wang Tao.
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