Gold rises as dollar weakens; Democrats score early wins in US midterm elections
GLD•Spot gold rose 0.5% to $3,947.49 an ounce as the dollar weakened after Democrats scored early Senate wins. Investors awaited Friday’s US non-farm payrolls report, while traders priced in a 78% chance of a December Federal Reserve rate hike.
1. Gold gains on weaker dollar
Spot gold was up 0.5% at $3,947.49 per ounce by 0415 GMT, and US December gold futures rose 0.5% to $3,958.00. A weaker dollar and declines in nominal and real US Treasury yields supported gold, said Pepperstone head of research Chris Weston.
2. Markets await payrolls data
US stock futures fell, Treasuries rallied and the dollar softened after Democrats notched early Senate wins in the midterm elections. Traders saw a 78% chance of a Federal Reserve rate increase in December, while markets awaited Friday’s non-farm payrolls report. Gold analyst Matt Simpson said $4,000 was an obvious resistance level.
