Gold prices stable as US dollar declines

Gold bars

Gold prices are flat today, Nov. 4, amid the US dollar’s weak performance, as investor caution prevailed ahead of the US presidential elections and looming Federal Reserve decision on interest rates, due this week.

Gold futures prices for December delivery held ground at $2,747.70 per ounce at 09:15 am Makkah time, with spot price steady at $2,736.18 an ounce.

On the other hand, silver futures for December delivery advanced 0.56% to $32.87 per ounce, with platinum spot prices also up 0.42% to $1,000.30 apiece.

Elsewhere, the US dollar index, which gauges the greenback's strength against a basket of six currencies, witnessed a 0.55% decline to 103.71 points, nearing its lowest level in two weeks.

The US dollar's setback came as the latest raft of US presidential election polling data showed a neck-and-neck race between the two most prominent candidates, current Vice President Kamala Harris and former US president Donald Trump.

The US is witnessing an unprecedented state of political polarization at the present time. Further, the Senate and House of Representatives elections are being held in tandem with the presidential election voting that begins tomorrow, Nov. 5.

Uncertainty this week could benefit gold, as delays in the election outcome or a split control of the House and Senate might drive safe-haven flows, pushing gold prices higher, said Tim Waterer, chief market analyst at KCM Trade, Reuters reported.

The Fed is scheduled to meet on Nov. 6 and 7 to decide on borrowing costs, amid almost certain expectations of a 25-basis-point (0.25%) cut in interest rates to a range between 4.5% and 4.75%.