Gold rises amid US elections

Tuesday saw a little increase in gold prices as investors prepared for political tensions following surveys that indicated Donald Trump and Kamala Harris were tied for the U.S. presidential election, which is likely to be a contentious outcome. The price of spot gold rose 0.2% to $2,740.96 per ounce. At $2,749.70, U.S. gold futures ended the day 0.1% higher. This year, gold has increased by almost 33%. If the outcome of the US election is postponed, uncertainty might be good for gold. Markets predict that on Thursday, the Fed will lower rates by 25 basis points.

Observers and analysts predict that following the US election, the price of gold may reach $2,800. The unpredictability of the elections helps gold. It includes the potential for tariffs of some sort as well as what occurs if things don’t go as planned.

With the U.S. Congress and the Republican former president Trump and Democratic vice president Harris in a dead draw, investors are especially nervous about an uncertain or disputed outcome, especially if it stokes unrest with early hours of Wednesday’s morning.

If there is uncertainty about the election outcome for days or even weeks, gold would profit from that uncertainty. Repeating his 2020 lies, Trump has stated that extensive fraud is the only reason for any defeat. If the critical states’ margins are as narrow as anticipated, the winner might not be known for days.

Eventually, once the dust settles, following the election, gold should hit $2,800. In other news, markets generally expect the Federal Reserve to lower interest rates by a quarter percent on Thursday, which would be the second decrease this year following a significant one in September.

As a hedge against political and economic unpredictability, God has historically prospered during periods of low interest rates. This has contributed to the metal’s over 33% increase so far this year. Platinum increased 1.5% to $998.35, palladium decreased 0.2% to $1,072.50, while spot silver increased 0.4% to $32.59 an ounce.

In October, services activity grew at its quickest rate in three months, according to a private sector survey conducted in China, the country’s largest metals consumer.