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Gold Holds Steady Ahead of US Election, Fed Rate Decision


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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