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Nov 2, 2020

Commodities | Gold Price Report: Gold gains as caution sets in ahead of U.S. election


2 minutes - Source: CNBC

Gold bars being cast at a plant by Gulidov Krasnoyarsk Non-Ferrous Metals Plant in Russia.

Gold bars being cast at a plant by Gulidov Krasnoyarsk Non-Ferrous Metals Plant in Russia.

Kirill Kukhmar | TASS | Getty Images

Gold prices rose on Monday as investors remained wary of the results of upcoming U.S. presidential elections and as a surge in COVID-19 cases and renewed lockdowns in some nations raised economic concerns.

Spot gold rose 0.5% to $1,886.66 per ounce, while U.S. gold futures were up 0.4% to $1,887.60.

“We’re only seeing small gains (in gold) and that’s not surprising. This is a massive event driven week, obviously with the elections,” said OANDA analyst Craig Erlam adding gold could see some volatile swings in prices on election day. “We’re seeing a bit of consolidation in the moves after gold came under heavy pressure last week.”

Gold prices fell about 1.2% last week.

Investors are prepared for short-term trading turmoil and major long-term policy shifts, on the eve of Tuesday’s U.S. election.

″(Gold) is stuck in a trading range, the dollar is a bit better than last week but still within a trading range for the past month or so,” said Afshin Nabavi, senior vice president at precious metals trader MKS SA. “So as long as we don’t see a break up or down in the dollar, don’t think you’re going to see anything exceptional on the precious side.”

The dollar, often seen as a rival safe-haven to gold, edged 0.1% higher against a basket of currencies.

Europe’s total COVID-19 cases crossed the grim milestone of 10 million on Sunday, prompting countries such as Britain and Portugal to enact fresh lockdowns.

Silver gained 1.2% to $23.92 an ounce, palladium rose 0.3% to $2,217.74 and platinum was up 0.3% at$851.14.

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