Gold Rises as the Market Positions for the U.S. Election
By
Joseph Hoppe, Dow Jones Newswires
Gold futures were rising 0.1% to $2,749.0 a troy ounce. The precious metal had set a fresh all-time high of at $2,801.80 per ounce at the end of October, followed by a small sell-off.
Gold stands out as the commodity of choice for hedging the upcoming U.S. elections, JPMorgan analysts said in a note. A Kamala Harris victory would suggest policy continuity and trend-like growth while a Donald Trump win could lead to significant policy changes, JPM said. Bullion could therefore see further upside on market uncertainty, should Republicans sweep the election under Trump.
Gold should remain supported on structurally bullish drivers either way, JPM said. These include growing concern over increasing U.S. fiscal debt as well as a supportive Federal Reserve interest-rate cycle.
