Investing.com - Gold prices added to overnight gains during North America's session on Wednesday, rising above the key $1,300-level for the first time since early October as the possibility of a victory for Donald Trump in next week’s U.S. presidential election boosted demand for safe-haven assets.
Gold for December delivery on the Comex division of the New York Mercantile Exchange touched an intraday peak of $1,300.75 a troy ounce, a level not seein since October 4.
It was last at $1,299.95 by 8:40AM ET (12:40GMT), up $11.50, or 0.89%.
On Tuesday, prices of the yellow metal surged $14.90, or 1.17%, as investors were rattled by signs the U.S. presidential election race was tightening less than a week before the November 8 vote.
Two separate polls showed Donald Trump moving slightly ahead of Hillary Clinton, as enthusiasm for the Democratic candidate has ebbed since the renewal of the FBI’s email investigation late last week.
The market is also keeping an eye on the outcome of the Federal Reserve's policy meeting later in the day. The U.S. central bank is not expected to raise interest rates, but could signal its intent to hike in December amid signs the economy is picking up steam.
Traders are currently pricing in a less than 10% chance of a rate hike today, according to Investing.com's Fed Rate Monitor Tool. For December, odds stood at around 70%.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.45% at 97.30 early Wednesday, the lowest since October 11.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Also on the Comex, silver futures for December delivery rose 19.4 cents, or 1.05%, to $18.61 a troy ounce during morning hours in New York, while copper futures dipped 1.3 cents, or 0.58%, to $2.216 a pound.