Gold gains amid U.S. election jitters, rising coronavirus cases
Gold prices surged, extending previous session gains as caution crept in ahead of U.S. presidential elections on Tuesday, although a resilient dollar capped gains.
Spot gold rose 0.2 percent to $1,882.62 per ounce by 0734 GMT, having hit a low of $1860.80 on Thursday, its lowest since September 28. U.S. gold futures were up 0.2 percent at $1,882.95 per ounce.
The dollar index rallied to a 1-month peak against its rival currencies, as investors prepared for U.S. presidential elections on Tuesday.
Democrat Joe Biden holds a commanding national lead over President Donald Trump, but Trump has stayed competitive in the swing states that could decide the White House race.
Besides the U.S. presidential election, this week is filled with economic data, including PMI data from the United States and euro zone, as well as U.S. non-farm payrolls and Chinese trade.
Activity in China’s factory sector accelerated at the fastest pace in nearly a decade in October as domestic demand surged. The Caixin/Markit Manufacturing Purchasing Managers’ Index(PMI) rose to 53.6 from September’s 53.0.
Global coronavirus cases surpassed 500,000 last week with Europe crossing the bleak milestone of 10 million total infections. The United Kingdom is grappling with more than 20,000 new cases a day while a record surge of U.S. cases is killing up to 1,000 people a day. Rapidly rising COVID-19 infection rates in Europe forced national lockdowns in Germany and France and a regional lockdown in Spain.
The Reserve Bank of Australia meets on Tuesday, while the Bank of England and U.S. Federal Reserve will announce their decisions on Thursday.
The greenback against a basket of currencies traded 0.1 percent up at 94.16, having touched a high of 94.17 earlier, its highest since September 30. The U.S. Treasury yields eased, with the benchmark 10-year note yield trading at 0.855 percent and the 30-year yield at 1.645 percent.