Gold was steady as investors monitored a tight US election that could prove massively consequential for financial markets. 

Bullion was near $2,740 an ounce as a gauge of the dollar rose. Given the closeness of the race between Democrat Kamala Harris and Republican Donald Trump, it's possible a final result may not be known for days or even longer, with the uncertainty potentially benefiting the precious metal.

Some investors in recent weeks have bet heavily on a Trump victory. Trades tied to his pro-growth agenda have buoyed the dollar, which would typically dent gold's appeal by making it more expensive for buyers using other currencies. However, nervousness over steep trade tariffs that Trump is pledging may also see investors flock to havens like bullion if he wins.

In the short term, a victory for Harris would likely lead to an initial brief selloff in gold, Deutsche Bank AG analyst Michael Hsueh said in a recent note. A slide in the dollar resulting from a Harris win could boost demand for the precious metal in China and India, while prospects for slower growth may spur a faster pace of US interest-rate cuts.

Gold has surged more than 30% this year in a record-setting run that's been powered by heightened geopolitical and economic risks, driving purchases by central banks and consumers alike. The rally has intensified in the last few months as the Federal Reserve pivoted to rate cuts and the US election loomed, helping bullion to shrug off traditional headwinds like rising Treasury yields.

"A Trump victory would likely result in a rising gold price," Commerzbank AG said in a note. "By contrast, a Harris victory would put gold under pressure. Should the election result be uncertain for days or even weeks, gold would benefit from the resulting uncertainty."

Spot gold dipped 0.1% to $2,741.11 an ounce as of 9:26 a.m. in Singapore. The Bloomberg Dollar Spot Index climbed 0.6%. Silver, platinum and palladium fell.

Source : Bloomberg