Investing.com– Gold prices edged higher Tuesday, trading close to record highs as the run-up to the 2024 presidential election and uncertainty before upcoming data prints kept safe haven demand in play.
At 07:00 ET (11:00 GMT), Spot gold rose 0.3% to $2,750.25 an ounce, while gold futures expiring in December climbed 0.3% to $2,762.75 an ounce.
Gold buoyed by election, rate jitters
The yellow metal has been bolstered by the uncertainty surrounding expectations of a tight U.S. presidential race, with Donald Trump and Kamala Harris set for a hotly-contested election, with voting set for Nov. 5.
Recent polls and prediction markets showed Trump gaining some ground over Harris, helping the appeal of gold given the growing concerns over the escalating US debt crisis.
The US deficit hit $1.8 trillion for the fiscal year ending in September, accounting for around 6% of GDP. If Trump wins and a “red wave” occurs, US debt could skyrocket by an additional $7.5 trillion over the next decade—more than double the $3.5 trillion increase proposed by Harris.
Uncertainty over the outcome, which will determine U.S. politics for the next four years, kept traders largely biased towards safe havens such as the dollar and gold.
Haven demand was also buoyed by anticipation of a string of key economic readings this week, which are likely to factor into the Federal Reserve’s plans for interest rates.
Tuesday sees the release of JOLTS job openings, before third-quarter gross domestic product data is due on Thursday. PCE price index data- the Fed’s preferred inflation gauge- and nonfarm payrolls data are due on Friday, with both prints coming just weeks before a Fed meeting.
Other precious metals rose on Tuesday. Platinum futures rose 1.3% to $1,060.60 an ounce, while silver futures rose 1% to $34.325 an ounce.
Copper dips, China data awaited
Among industrial metals, copper prices rebounded as investors awaited more economic cues from China, the world’s biggest importer of the red metal.
Benchmark copper futures on the London Metal Exchange fell 0.9% to $9,644.0 a ton, while December copper futures fell 1.3% to $4.4180 a pound.
Copper was nursing steep losses through October as recent stimulus measures from Beijing failed to inspire confidence in an economic recovery.
Focus was now on purchasing managers index data from China, due on Thursday, for more cues on the economy.
(Ambar Warrick contributed to this article.)
This post is originally published on INVESTING.
