Spot gold rose 0.2% to $2,740.96 per ounce at 13:54. U.S. gold futures rose 0.1% to $2,749.70.

Gold is “supported by the uncertainty of the elections,” said senior market strategist Daniel Pavilonis. “Part of it is what happens if things don’t go so smoothly, part of it is the possibility of tariffs and some kind of economic change,” he told RJO Futures.

With the conflict between Republican former President Trump and Democratic Vice President Harris and control of the US Congress also at stake, investors are nervous about an uncertain or controversial outcome, especially if it fuels unrest.

“If the election outcome remains uncertain for days or even weeks, gold will benefit from the resulting uncertainty,” Commerzbank said in a note. he said.

Trump repeated his baseless claims from 2020, repeatedly saying any defeat could only come from widespread fraud. If the margins in key states are as slim as expected, the winner may not be known for days.

Exinity Group Chief Market Analyst Han Tan said gold will reach $2,800 “when the dust settles” after the election.

On the other hand, markets expect the Fed to cut interest rates by a quarter point on Thursday and further cuts in US interest rates this year, following the big cut in September.

Bullion has traditionally been viewed as a hedge against economic and political uncertainty and tends to thrive when interest rates are low. This has helped the metal rise nearly 33% so far this year.

Spot silver increased by 0.4% to $32.59 per ounce, platinum increased by 1.5% to $998.35, and palladium decreased by 0.2% to $1,072.50.

Private sector research in China, the largest metal consumer, showed that service activity increased at the fastest pace in the last three months in October.