GOLD prices were steady on Monday (November 4) as investors braced for a critical week for the global economy marked by the US presidential election and the possibility of further interest rate cuts.

Spot gold rose 0.1 percent to $2,738.29 per ounce by GMT. Bullion hit a record high of $2,790.15 on Thursday.

US gold futures were flat at US$2,747.50.

As Tuesday’s US presidential election approaches, opinion polls suggest a tight competition between Democratic candidate Kamala Harris and Republican Donald Trump, which could significantly impact bullion prices.

This week, market participants will closely follow the Federal Reserve’s decision to cut interest rates and the statements of Fed Chairman Powell and other Fed officials.

The CME FedWatch tool showed that investors currently expect a 98 percent chance that the Fed will cut interest rates by a quarter basis point this week.

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Gold is seen as a safe investment during economic and geopolitical turmoil due to its ability to store value; grows in a low interest rate environment.

Friday’s data showed U.S. job growth nearly stalled in October as strikes in the aerospace industry slashed manufacturing jobs and hurricanes shortened payroll collection times.

From a physical perspective, gold demand in India increased last week due to festival buying, but volumes were lower than usual due to record high prices.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its assets decreased by 0.35 percent to 888.63 tons on Friday.

Spot silver rose 0.4 percent to $32.5443 per ounce, platinum fell 0.1 percent to $991.72, and palladium rose nearly 1 percent to $1,108.36. REUTERS