Gold (XAU/USD) continues to backslide from its record high, eventually finding support at $2,724 early on Tuesday and bouncing back to regain the $2,740s. A marginally weaker US Dollar (USD) due to uncertainty over the US presidential election result is aiding Gold in its rebound, since the precious metal is mostly priced and traded in USD.
This comes as markets increasingly view the final result of the election as polarizing for the US currency, with a victory for Republican nominee Donald Trump USD-bullish but the opposite for Democrat nominee Kamala Harris.
Gold rises from safety flows due to the high level of uncertainty regarding the outcome of the US presidential election, which regardless of the winner alone can be bullish for the yellow metal.
"Regardless of the outcome, significant political shifts can unsettle financial markets, and such uncertainty typically fuels volatility, and both can serve as catalysts for higher Gold prices," says Matthew Jones, precious metals analyst at Solomon Global.
The highly-rated election forecaster 538.com indicates a 50% probability of Vice President Harris winning on Tuesday whilst former President Donald Trump has a 49% chance of victory. That leaves a 1% chance of no overall winner. Over the last 24 hours, Harris has edged into the lead after lagging Trump for several days. This may also explain Gold's turnaround on Tuesday.
Solomon's Jones is bullish on Gold overall, seeing the election outcome as a "win-win" for the precious metal regardless of which candidate is victorious.
A Trump in the White House would lead to "inflationary pressures and geopolitical tensions," according to the analyst, which could, "amplify Gold's appeal as a safe-haven asset, driving demand upward."
Source: FXStreet
Gold edges lower in the early Asian session amid lingering worries over China's Finance Ministry ending of a tax incentive for sales of the precious metal, effective Nov. 1. "The new rules may potent...
Gold prices held near $4,000 an ounce after a weak start on Monday, as China ended long-standing tax breaks for some retailers. This change could weigh on demand in one of the world's largest precious...
Gold prices rose on Monday (November 3), boosted by expectations of further US interest rate cuts following comments from the US Federal Reserve Board's Christopher Waller, although a stronger dollar ...
China ended a long-standing tax exemption policy for some gold retailers on Saturday, potentially discouraging purchases of the precious metal in the world's largest consumer market. Beijing will rem...
Gold prices fell early in the Asian session after China's Ministry of Finance ended tax incentives for precious metal sales as of November 1st. This decision surprised the market, as the previous rule...
The Reserve Bank of Australia (RBA) decided to maintain the cash rate at its current level following its November policy meeting. The RBA assessed that despite improving financial conditions, inflationary pressures remain in the economy,...
Silver prices edged higher today after previously surging to their highest level in over a decade, driven by two main factors: strong industrial demand (particularly from the solar and electronics sectors) and a multi-year supply deficit....
Asian stocks opened lower on Tuesday, reversing Wall Street's rally fueled by Amazon's massive $38 billion deal with OpenAI. Stock markets in South...
Asian stock markets moved mixed on Monday, November 3, 2025. Japan led the gains: the Nikkei 225 remained near its record high of around 52.4...
European stocks opened slightly higher in November, with the STOXX 50 and STOXX 600 gaining 0.2%, after closing near record highs in October....
The economic activity in the United States' (US) manufacturing sector continued to contract in October, with the Institute for Supply Management's...