Gold prices remained subdued on Wednesday, October 6, as investors took a cautious approach ahead of the US election results and the Federal Reserve’s upcoming meeting. The precious metal showed little movement, with market participants waiting for more clarity on political and economic developments.
As of 0051 GMT, spot gold was down by 0.2%, trading at $2,738.89 per ounce. Last Thursday, gold reached a record high of $2,790.15, but has since cooled as traders stayed on the sidelines.
US gold futures also dipped slightly, edging 0.1% lower to $2,747.80.
Election Uncertainty Weighs on Markets
The US presidential race continued to dominate headlines, with millions of Americans casting their votes in a highly contentious election. As of early results, Donald Trump had secured victories in Indiana, Kentucky, and West Virginia, while Kamala Harris won Vermont. However, key battleground states remained too close to call, and final results could be delayed, keeping markets in suspense.
Federal Reserve Focus
In addition to the election, investors were also keeping an eye on the Federal Reserve’s two-day meeting, which is set to conclude on Thursday. Market expectations were high for a 25-basis-point rate cut, with the CME FedWatch tool showing a 96% chance of this outcome.
Gold is often seen as a safe haven in times of economic uncertainty, thriving particularly in low-interest-rate environments, which makes the Fed’s decision a key factor for bullion markets.
Economic Data and Global Metals
In economic news, the US trade deficit widened sharply in September, driven by higher imports as businesses sought to meet domestic demand and prepare for potential tariff increases on foreign goods.
Meanwhile, in China, a private sector survey showed that services activity expanded at its fastest pace in three months during October, adding some positive sentiment for metals consumption in the world’s largest metals consumer.
Other Precious Metals
Elsewhere in the precious metals market, silver, platinum, and palladium also experienced declines. Spot silver fell by 0.6%, trading at $32.47 per ounce. Platinum dropped 0.7%, settling at $992.92, while palladium saw a steeper 1.6% decrease, falling to $1,058.24.
Investors continue to navigate a complex mix of political, economic, and monetary factors as they wait for the US election outcome and closely monitor the Federal Reserve’s policy direction.
Related topics:
