Gold prices remained stable on Monday as investors exercised caution ahead of the U.S. presidential election and the Federal Reserve's upcoming decision on interest rates. Spot gold stood at $2,738.27 an ounce at 1053 GMT, close to last Thursday's record high of $2,790.15. U.S. gold futures dipped 0.1% to $2,747.10.
UBS analyst Giovanni Staunovo remarked that the election would be the primary driver for gold prices this week. He suggested a Trump victory could propel gold toward $2,900 per ounce, while a Harris win might lead to a temporary drop. The Fed's expected rate cut is not anticipated to cause significant movement, as it is likely in line with market expectations. Gold has surged 33% this year, hitting multiple record highs, as it remains a traditional hedge against economic and political uncertainty, especially thriving in low-interest-rate environments.
Meanwhile, the dollar index (.DXY) fell 0.6%, reaching a two-week low. A weaker U.S. dollar makes gold, priced in dollars, more attractive to buyers using other currencies.
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