Gold and silver prices saw modest gains as the U.S. presidential race between Vice President Kamala Harris and former President Donald Trump remains tightly contested. Front-month gold futures edged up 0.2% to $2,740.30 an ounce, with SPDR Gold shares also up 0.1%. Despite the uncertainty, a victory by either candidate isn’t expected to significantly impact gold’s trajectory, says Taylor Krystkowiak of Themes ETFs. “The U.S. national debt is likely to rise regardless of the winner, which has been a strong tailwind for gold in recent months,” Krystkowiak notes, adding that trading volumes are expected to stay limited until the election results are finalized.
In commodities trading, November Comex gold futures rose $4.20 per troy ounce, or 0.15%, to settle at $2,740.30, marking the largest one-day gain since October 30. Gold has climbed in 15 of the past 19 sessions and is up 37.68% from its low of $1,990.30 in February. Year-to-date, gold has gained 32.87%, driven by inflation concerns and economic uncertainties.
Comex silver for November delivery gained 17.5 cents, or 0.54%, to $32.655 per ounce, snapping a four-session losing streak. Silver is up 47.79% from its 52-week low of $22.096 in February, with a 36.90% gain for the year.
Gold prices are expected to remain steady as election results unfold, with investors closely watching for signals on inflation and Federal Reserve policy. According to Commerzbank analysts, Trump’s inflationary policies could boost gold prices, while a Harris win could put downward pressure on the metal due to a likely softer dollar.
Berenberg analysts also believe that, regardless of the outcome, the election will support gold prices. Trump’s potential for increased geopolitical volatility would favor gold, while Harris’s potential impact on the dollar could also be supportive. Additionally, a likely 25-basis-point interest rate cut from the Federal Reserve this week would further bolster gold, which generally performs well in rate-cutting environments.
