Gold eases ahead of US midterm elections
GLD•Spot gold fell 0.5% to $3,926.52 an ounce as investors awaited the US midterm election results, after rising more than 2% in the previous session. Traders priced in a 74% chance of a Federal Reserve rate hike in December.
1. Gold prices retreat
Spot gold fell 0.5% to $3,926.52 per ounce by 0353 GMT on Tuesday, after climbing more than 2% in the previous session to $3,954.41. December US gold futures dropped 0.8% to $3,936.30.
2. Rates and market pressure
Gold was in consolidation after last week’s losses, KCM Trade chief market analyst Tim Waterer said. He said traders were selling gold to cover losses and margin calls elsewhere, rather than buying it as a safe haven. Traders saw a 74% chance of a Fed rate hike in December, while oil prices fell more than 7% on Monday.
3. Election in focus
Investors awaited the US midterm election outcome and its potential impact on broader market sentiment. Waterer said a Democratic sweep would likely be more problematic for the AI data-centre build-out and broader tech trade, and that pressure on technology stocks could spill over into gold.
