Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Gold extends rally amid U.S. election jitters; Fed decision ahead

Published 11/02/2016, 03:56 AM
Updated 11/02/2016, 03:56 AM
© Reuters.  Gold futures rise to fresh 1-month high

Investing.com - Gold prices extended overnight gains during Europe's session on Wednesday, climbing to a fresh one-month high as demand for safe-haven assets was boosted amid growing jitters over the U.S. presidential election.

Gold for December delivery on the Comex division of the New York Mercantile Exchange touched an intraday peak of $1,295.85 a troy ounce, the most since October 4. It was last at $1,295.35 by 3:55AM ET (07:55GMT), up $7.40, or 0.58%.

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 0.2% at 97.58 early Wednesday, well of last week's nine-month high of 99.09.

Also on the Comex, silver futures for December delivery rose 2.9 cents, or 0.16%, to $18.45 a troy ounce during morning hours in London, while copper futures dipped 1.6 cents, or 0.72%, to $2.213 a pound.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.