gold price fluctuates as us election heats up and fed meeting approaches

IG

The U.S. election is becoming more intense as Donald Trump and Kamala Harris continue to compete closely, particularly in key "swing states."

Online betting platform PredicIt suggests that the candidates are evenly matched, while Polymarket indicates that Trump has a clear advantage. Investors are closely watching the election unfold.

The Federal Reserve is scheduled to meet on Thursday to discuss interest rates, with a decision expected at 20:00. Jerome Powell will hold a press conference at 20:30. Market expectations indicate a 97.8% chance of a quarter-point rate hike, which would raise the interest rate band to 4.50-4.75%. There is also speculation about a potential rate cut in December. If the election results are delayed, it could benefit gold prices, with investors targeting the $2,800 mark. On the other hand, there is a possibility of a short-term pullback to $2,700 due to ongoing market volatility resulting from the convergence of political and economic factors.

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