Investing.com - Gold’s ability to concede little in the face of adverse interest rate hikes has reestablished its position as the safe-haven of choice for investors. But with the impending U.S. midterm elections, the yellow metal is barely making ripples in $1,200 territory, disappointing some traders hoping for greater moves.
Gold futures for December delivery were up $1.90, or 0.2%, at $1,225.60 per troy ounce on the COMEX metals division of the New York Mercantile Exchange by 2:00 PM (18:00 GMT). It had earlier ended the official session down $4.10 at $1,224.60, COMEX data showed.
Since last week, speculation had been rife that gold bugs would push the contract toward the $1,250 level ahead of options expiry to capitalize on options they held.
But that looks less likely with just three sessions to go and December gold $25 off that target.
“At this juncture, all the markets are focusing on the midterm elections, as there no other significant news that they see impacting the price of gold at this time,” said Walter Pehowich, executive vice-president at Dillon Gage Metals in Addison, Texas.
“Not helping matters are the higher dollar and Treasury yields,” Pehowich added.
The dollar index, a measure of the greenback’s strength against six major currencies, was up 0.3% at 95.71. The benchmark 10-Year Treasury note yield was down 0.1% at 3.188% after initially spiking to 3.207%.
Investors will also be on the lookout this week for U.S. third-quarter GDP data, monetary policy decisions from the European Central Bank and Bank of Canada and U.S. new and pending home sales numbers.
In other COMEX precious metals trading, silver futures futures fell 0.4% to $14.60 a troy ounce.
Palladium futures rose 3.4% to $1,106.20 an ounce, while sister metal platinum traded down 1.1% at $826.80.
Among base metals, COMEX copper rose 0.6% to $2.784 a pound.