Bullion could hit 2,800 after US election, analyst says
Gold has risen 33 so far this year
Traders widely expect a 25bp Fed rate cut on Thursday
Nov 5 Reuters Gold prices held steady on Tuesday as market participants braced for the outcome of the U.S. presidential election, with opinion polls suggesting a neckandneck race between Democrat candidate Kamala Harris and Republican Donald Trump.
Spot gold was little changed at 2,738.83 per ounce by 1045 GMT, having hit a record high of 2,790.15 last week. U.S. gold futures edged up 0.1 to 2,748.20.
The precious metal should rise if Harris wins due to her policies supporting low interest rates, but a sudden dollar spike could reduce gold39;s value if Trump wins, Han Tan, chief market analyst at Exinity Group, said.
Gold traders and investors are likely to withhold their responses until early signals emanate from the U.S. presidential race, said Tan. Gold should ultimately claim the 2,800 handle once the dust settles after the election, he added.
Bullion, traditionally seen as a hedge against economic and political risks, has gained 33 so far this year.
The metal tends to thrive in a low interestrate environment. The Fed39;s latest rate decision is also due on Thursday, along with remarks from Chair Jerome Powell and other officials.
According to the CME FedWatch tool, markets widely expect a quarterpoint cut on Thursday, which would be the second U.S. rate reduction of the year after a jumbo cut in September.
The…