Gold inches lower in run-up to US congressional elections
Investors are bracing themselves for the midterms, which may fuel interest in bullion as a hedge against risk if the result sparks volatility
Bengaluru — Gold prices edged lower in early Asian trade on Tuesday as the dollar strengthened, while investors awaited US midterm election results for market direction. Spot gold was down about 0.2% at $1,228.20/oz at 4.52am GMT while US gold futures fell 0.2% to $1,230.5/oz. “Dollar is a little bit firmer so that’s putting some pressure on gold,” a Hong Kong-based trader said, adding that gold will be trading mostly sideways until the midterm elections results. Investors braced themselves for US midterm elections due later in the day, which may fuel interest in bullion as a hedge against risk if the result sparks volatility in the wider financial markets. The dollar index, which measures the greenback against a basket of six major currencies, was up about 0.1%, while Asian shares wobbled supported by Wall Street gains although sentiment was tempered ahead of the elections. Dollar-denominated gold, which is used as an alternative investment during times of political and financial u...
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