Gold firms on U.S. election, economic uncertainty; dollar strength caps gains

A gold bar is wrapped in a financial newspaper.

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Gold edged up on Thursday after a plunge in the previous session as surging global coronavirus cases and fears of a contested U.S. presidential election spurred demand, although a strong dollar capped gains.

Spot gold rose 0.2% to $1,881.16 per ounce by 0413 GMT, after falling as much as 2% on Wednesday to a one-month low. U.S. gold futures were up 0.2% at $1,882.U.S. political uncertainty and low-interest rates are underpinning gold’s appeal, said Brian Lan, managing director at GoldSilver Central, adding investors were taking advantage of Wednesday’s fall to buy bullion.Ahead of the Nov. 3 election, Democratic challenger Joe Biden leads President Donald Trump nationally, but the competition is tighter in swing states which will decide the victor.“If Biden wins and that becomes a clear outcome that would be supportive (of gold), because the expectation would […]

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