Gold steadies as investors brace for US election and potential rate cuts

Gold prices held steady on Monday, as investors prepared for a crucial week for the global economy, marked by the U.S. presidential election and the likelihood of further interest rate cuts.

FUNDAMENTALS

* Spot gold edged up by 0.1% to $2,738.29 per ounce, as of 0012 GMT. Bullion hit a record high of $2,790.15 on Thursday.

* U.S. gold futures were flat at $2,747.50.

* With Tuesday’s U.S. presidential election looming, opinion polls reveal a tight contest between Democratic candidate Kamala Harris and Republican Donald Trump, which could significantly influence bullion prices. * This week, market participants will pay close attention to the Federal Reserve’s interest rate cut decision and remarks from Fed Chair Powell and other Fed officials.

* Currently, traders anticipate a 98% chance of a quarter-basis-point Fed rate cut this week, the CME FedWatch tool showed.

* Gold is considered a safe investment during economic and geopolitical turmoil due to its ability to store value; it thrives in a low interest rate environment.

* Data on Friday showed that U.S. job growth nearly stalled in October as strikes in the aerospace industry reduced manufacturing jobs and hurricanes shortened the payroll collection period.

* On the physical front, gold demand in India jumped last week amid festival purchases, although volumes were lower than usual due to record-high prices.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.35% to 888.63 tonnes on Friday.

* Spot silver rose 0.4% to $32.5443per ounce, platinum edged down by 0.1% to $991.72 and palladium added nearly 1% to $1,108.36.

DATA/EVENTS (GMT) 0850 France HCOB Manufacturing PMI Oct 0855 Germany HCOB Mfg PMI Oct 0900 EU HCOB Mfg Final PMI Oct 1500 US Factory Orders MM Sept.

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