Gold edges higher on softer oil; US midterm elections in focus
GLD•Spot gold rose 0.3% to $3,960.80 an ounce in early Asian trade after oil fell more than 7% in the previous session, easing inflation concerns. Investors awaited the US midterm election outcome, while traders saw a 73% chance of a Federal Reserve rate increase in December.
1. Gold gains as oil falls
Spot gold rose 0.3% to $3,960.80 per ounce by 0032 GMT, extending gains after rebounding from a one-year low on Friday. US gold futures for December delivery steadied at $3,970.80. Oil prices fell more than 7% on Monday, easing inflation concerns.
2. Rates and elections in focus
Investors awaited the US midterm election outcome for clues on the fiscal policy outlook and broader investor sentiment. Traders saw a 73% chance of a Federal Reserve rate increase in December; higher interest rates raise the opportunity cost of holding non-yielding bullion. Spot silver gained 0.3% to $50.79 per ounce, while platinum and palladium each rose 0.2%.
