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Gold eases as investors await the U.S. elections
Gold prices declined after rising nearly 1 percent in the previous session, as caution set in ahead of the U.S presidential elections.
Spot gold was trading 0.3 percent down at $1,889.24 per ounce by 0734 GMT, having hit a low of $1860.80 on Thursday, its lowest since September 28. U.S. gold futures were trading 0.2 percent lower at $1,889.05 per ounce.
The dollar index eased against a basket of currencies, having hit a 1-month high in the prior session on investor jitters over the outcome of Tuesday’s U.S. presidential election.
President Donald Trump and Democratic challenger Joe Biden made a last-ditch push for votes in battleground states as their campaigns prepared for post-election disputes that could prolong a divisive presidential election. Joe Biden leads in national opinion polls, but the race looks close enough in battleground states that President Donald Trump could win the 270 Electoral College votes needed to win.
A surge in global coronavirus cases also weighed on investor sentiment. More than 46.62 million people have been reported to be infected by the novel coronavirus globally. Italy is the latest country in Europe to tighten COVID-19 restrictions, while reports showed new pandemic cases hit record highs last week in the United States.
Prime Minister Boris Johnson announced over the weekend a one-month lockdown across England.
U.S. manufacturing activity accelerated more than expected in October, with new orders jumping to their highest in nearly 17 years, while Chinese factory activity expanded the fastest in a decade and euro zone manufacturing also sped up.
The Reserve Bank of Australia cut both the cash rate and its target for three-year yields by 15 basis points to 0.1 percent and also extended bond purchases out to the 5- to 10-year tenors.
The Federal Open Market Committee will begin its two-day meeting on interest rate policy on Wednesday, with policymakers expected to reaffirm its commitment to support the pandemic-hit economy and keep interest rates unchanged. U.S. jobs data for October is also in focus on Friday.
The greenback against a basket of currencies traded 0.3 percent down at 93.84, having touched a high of 94.28 on Monday, its highest since September 20. The U.S. Treasury yields rose, with the benchmark 10-year note yield trading at 0.869 percent and the 30-year yield at 1.645 percent.