U.K.’s flash PMI indices indicate decline in business activity in November, composite index falls to 47.4
Gold declines as greenback steady amid U.S. election uncertainty
Gold prices slumped as the dollar strengthened as the incoming U.S. election results indicated that the race is tighter than expected.
Spot gold declined 0.8 percent to $1,894.21 per ounce by 0738 GMT, having hit a high of $1916.48 earlier, its highest since October 22. U.S. gold futures fell 0.8 percent to $1,893.40.
The U.S. presidential election proved far closer than polls had predicted, leaving the outcome utterly in doubt.
Investors had initially bet that a possible Democratic win by Joe Biden could ease political risk while promising a huge boost to fiscal stimulus. However, sentiment quickly changed on signs President Donald Trump was much closer in major battleground states than polls had predicted.
Markets also await the outcome of U.S. Federal Reserve and Bank of England meetings this week, which are expected to at least give a nod to further stimulus.
Gold has gained about 25 percent so far this year on the back of unprecedented global stimulus amid the COVID-19 pandemic.
The dollar rose against its rival currencies after preliminary results suggested President Donald Trump has a slight edge over Democratic challenger Joe Biden.
The greenback against a basket of currencies traded 0.8 percent up at 94.06, having touched a high of 94.30 earlier, its highest since September 28. The U.S. Treasury yields plunged, with the benchmark 10-year note yield trading at 0.776 percent and the 30-year yield at 1.540 percent.