Gold edges lower as dollar and yields strengthen; US midterms in focus
GLD•Spot gold fell 0.5% to $3,927.18 an ounce as the dollar and Treasury yields strengthened, with investors watching the US midterm elections. December US gold futures settled 0.7% lower at $3,940.40 an ounce.
1. Gold prices slip
Spot gold fell 0.5% to $3,927.18 per ounce by 2:06 p.m. ET, after earlier dropping as much as 1% to a session low of $3,893.31. December US gold futures settled 0.7% lower at $3,940.40 per ounce.
2. Dollar and yields weigh
The dollar rose modestly and Treasury yields edged higher, pressuring bullion. A slight pullback in rate-hike expectations offered some support to non-yielding assets; traders priced in a 79% chance of a Federal Reserve rate increase in December.
3. Election and demand outlook
Investors awaited the US midterm election outcome for fiscal policy clues. The World Gold Council cut its forecast for gold investment growth this year to 200 metric tons from 400 tons previously, while raising its estimate for central bank purchases.
