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- Bullish gold ahead of an expected FOMC decision
Bullish gold ahead of an expected FOMC decision
Gold prices continued to rise today, climbing above $1,300 an ounce for the first time in almost a month as the U.S. dollar fell the race for the U.S. presidency tightened.
Gold for December delivery rose $17.20 an ounce, or 1.34% to $1,305 in recent market action.
Less than one week ahead of the U.S. election, analysts said the appetite for gold was mounting on the possibility of a victory for Republican candidate Donald Trump, with the metal providing a safe haven. HSBC analyst James Steel says the price of the precious metal could rise to $1,500 by the end of 2016 and climb to $1,575 next year following a Trump Victory.
Gold prices also depend on the U.S. dollar, as well as Federal Reserve interest rates.
A stronger dollar will pressure gold, which is priced in the U.S. currency and becomes more expensive for foreign buyers when the dollar rises. The metal, which does not pay dividends or generate interest income, struggles when rates rise.
U.S. Federal Reserve will release its latest monetary policy statement, even as a rate increase isn't expected until December.
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