Please try another search
Investing.com - Gold prices edged lower during Europe's session on Tuesday, as market sentiment improved amid the view that U.S. presidential candidate Hillary Clinton did better than her rival Donald Trump in a closely-watched television debate.
Online betting companies shortened the odds on a Clinton win in the wake of the Monday night debate, leaving her as the clear favorite among bettors.
With just around six weeks to go until the November 8 U.S. presidential election, the market is shifting its focus to American politics. Traders are mostly expecting Democratic candidate Hillary Clinton to win the presidency and have not factored in the implications of a victory for Donald Trump. The idea of Trump in the White House is a worrying one for some investors who balk at his populist, unpredictable style.
Recent polls have shown a tightening race, with Clinton's once-comfortable lead narrowing sharply. The next presidential debate is scheduled for October 9, with the third and final clash set for October 19.
Gold for December delivery on the Comex division of the New York Mercantile Exchange dipped $3.35, or 0.25%, to $1,340.75 a troy ounce by 4:10AM ET (08:10GMT). On Monday, prices inched up $2.40, or 0.18%.
The precious metal has been well supported in recent days after the Federal Reserve held off on raising interest rates and scaled back the number of rate hikes it expects next year.
Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.
The Fed has policy meetings scheduled in early November and mid-December. Economists believe policymakers would avoid a rate hike in November in part because the meeting falls just days before the U.S. presidential election.
Markets are currently pricing in just a less than 10% chance of a rate hike at November's meeting, according to Investing.com's Fed Rate Monitor Tool. For December, odds stood at around 52%.
Investors will pay close attention to comments from a key Fed official later in the day for further hints on the timing of a U.S. rate hike. Fed Vice Chair Stanley Fischer is due to speak at 11:15AM ET (15:15GMT) at the Howard University Economic Convocation, in Washington DC.
Besides Fischer's speech, traders will focus on U.S. consumer confidence data for September due at 10:00AM ET (14:00GMT). There is also S&P/Case-Shiller home price data at 9:00AM ET (13:00GMT) as well as a preliminary report on service sector activity at 9:45AM ET (13:45GMT).
In the currency market, the U.S. dollar index, which measures the greenback's value against a basket of six major currencies, was little changed at 95.23 early Tuesday.
Against the yen, the dollar inched up 0.35% to 100.66, keeping distance from a one-month low of 100.06 touched last week.
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.