Investing.com– Gold prices rose in Asian trade on Tuesday, coming 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.
The yellow metal recouped all of its losses from the prior session, as easing fears of the Middle East conflict saw gold slip from recent peaks.
But safe haven demand remained bolstered by expectations of a tight U.S. presidential race, while upcoming economic prints are also likely to factor into the outlook for interest rates.
rose 0.4% to $2,753.60 an ounce, while expiring in December rose 0.4% to $2,765.50 an ounce by 00:39 ET (04:39 GMT).
Gold buoyed by election, rate jitters
Donald Trump and Kamala Harris are set for a hotly-contested election, with voting set for November 5.
Recent polls and prediction markets showed Trump gaining some ground over Harris, although analysts still forecast a tighter race.
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.
Third-quarter data is due on Thursday. data- the Fed’s preferred inflation gauge- and data are due on Friday, with both prints coming just weeks before a Fed meeting.
Gold and precious metal prices had persevered even as recent data prints furthered bets that the Fed will cut rates at a slower pace in the coming months. The central bank is expected to trim rates by 25 basis points in November.
Other precious metals rose on Tuesday. rose 1% to $1,054.00 an ounce, while rose 0.2% to $34.070 an ounce.
Copper dips, China data awaited
Among industrial metals, copper prices retreated as investors awaited more economic cues from China, the world’s biggest importer of the red metal.
Benchmark on the London Metal Exchange fell 0.5% to $9,510.0 a ton, while December fell 0.7% to $4.3362 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 data from China, due on Thursday, for more cues on the economy.