Gold edges lower as dollar and yields strengthen; US midterms in focus
GLD•Spot gold fell 0.5% to $3,928.49 an ounce as the dollar and Treasury yields strengthened, while investors watched the US midterm elections. December gold futures slipped 0.8% to $3,938.90.
1. Dollar and yields weigh
Spot gold fell 0.5% to $3,928.49 per ounce by 12:11 p.m. ET, after earlier touching a session low of $3,893.31. December US gold futures dropped 0.8% to $3,938.90 per ounce. The dollar rose modestly and Treasury yields edged higher.
2. Rates and election focus
Traders saw a 73% probability of a Federal Reserve rate increase in December, down from 76% earlier in the day. Investors awaited the US midterm election outcome for clues on fiscal policy; polls and nonpartisan analysts favoured Democrats to take control of the House, while control of the Senate remained uncertain. The World Gold Council lowered its forecast for gold investment growth this year to 200 metric tons from 400 tons, while raising its estimate for central bank purchases.
