The precious metals market experienced a minor setback on Monday, November 2, 2024.
Gold prices closed with a slight decrease as investors cautiously awaited two major events.These events are expected to significantly impact the market in the coming days.
The first event is the United States presidential election, scheduled for Tuesday.The second is the Federal Reserves monetary policy decision, set to be announced on Thursday.
Both events have created an atmosphere of anticipation among traders and investors.December gold futures on the Comex division of the New York Mercantile Exchange closed at $2,746.20 per troy ounce.
This represents a modest decline of 0.11% from the previous trading session.During the days trading, gold prices fluctuated, reaching a high of $2,757.50.
The current political landscape in the United States has contributed to market uncertainty.Gold Prices Dip Slightly as Markets Await United States Election and Fed Decision.
(Photo Internet reproduction)Recent polls indicate a tight race between Vice President Kamala Harris and former President Donald Trump.
This close contest has fueled demand for gold as a safe-haven asset in recent days.Gold Market OutlookANZ Research analysts suggest that the expected 25 basis point interest rate cut by the Federal Reserve could make gold more attractive to investors.However, they caution that a pause or shallow rate cuts might prompt profit-taking after the recent price surge.
Citis market analysis reveals that gold has historically shown negative average returns in short periods following the US presidential elections.They suggest that a post-election gold sell-off is possible, especially if Trump wins or if Republicans gain significant ground in Congress.The potential for corporate tax cuts and supportive actions under a Republican-led government could influence gold prices.These factors add another layer of complexity to the markets current dynamics.
Investors are closely monitoring these developments as they position their portfolios.As the week unfolds, market participants will be keenly observing how these events impact gold prices.
The outcome of the US election and the Feds decision will likely shape the trajectory of precious metals in the near term.