Spot Gold gained 0.1% to $3,931.24 an ounce by 0306 GMT on Wednesday, while US gold futures for December delivery were steady at $3,941.40. A weaker dollar and falling US Treasury yields helped support the metal, according to Chris Weston, head of research at Pepperstone.
US stock futures fell and Treasuries rallied as early Senate results favoured Democrats, prompting bets they could take control of the chamber from Republicans. The final outcome remained uncertain. Weston also said demand for protection against the possibility of a less predictable and more confrontational Trump administration was supporting gold buying.
Investors are now looking to Friday’s US non-farm payrolls report for signals about the Federal Reserve’s policy path. Traders see a 78% chance of a rate increase in December, according to CME’s FedWatch tool. Higher rates can weigh on gold because the metal does not pay interest.
Matt Simpson, senior market analyst at StoneX, identified $4,000 an ounce as a key resistance level, saying a move beyond the current range could determine gold’s next significant direction.
Elsewhere in the precious metals market, spot silver fell 1.3% to $49.12 an ounce. Platinum declined 1.9% to $1,389.54, while palladium slipped 0.6% to $928.23.
Sources: Investing.com News.