GOLD prices were muted on Wednesday (Oct 6), as investors held back from taking big positions until the US election’s outcome was known and shifted focus to the Federal Reserve’s upcoming meeting.
Spot gold fell 0.2 per cent to US$2,738.89 per ounce, as at 0051 GMT. Bullion hit a record high of US$2,790.15 last Thursday.
US gold futures edged 0.1 per cent lower to US$2,747.80.
Millions of Americans cast their votes on Tuesday in a hotly-contested presidential race, with final results possibly delayed if key battleground states remain closely contested.
Meanwhile, Donald Trump has won Indiana, Kentucky and West Virginia, while Kamala Harris has taken Vermont as early election results rolled in, Edison Research reported.
Traders are also focused on the Fed’s two-day meeting, which concludes on Thursday, along with comments from chair Jerome Powell.
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Traders see a 96 per cent chance of a 25-basis-point rate reduction this week, according to the CME FedWatch tool.
Bullion is considered a hedge against geopolitical and economic uncertainties and tends to thrive in low-interest-rate environment.
US trade deficit widened sharply in September as businesses boosted imports to meet robust domestic demand and in anticipation of higher tariffs on goods, data on Tuesday showed.
Elsewhere, private sector survey in top metals consumer China showed services activity expanded the fastest in three months in October.
Spot silver fell 0.6 per cent to US$32.47 per ounce, platinum shed 0.7 per cent to US$992.92 and palladium was down 1.6 per cent to US$1,058.24. REUTERS
