Major currencies, including the dollar, remained relatively stable on Tuesday as market participants awaited several key data reports and speeches scheduled for later this week. Meanwhile, gold is approaching a new all-time high.
On Tuesday, gold nearly matched its record from the previous day of $2,740.59 per ounce. This morning, the price of an ounce of gold increased by 0.42%, reaching $2,731.30.
Throughout the year, demand for the precious metal has been fueled by expectations of interest rate cuts, purchases by central banks, and safe-haven buying amid geopolitical turmoil, particularly in the Middle East.
“Recently, the forthcoming U.S. presidential election has intensified upward momentum, with uncertainty regarding the outcome driving investors towards the safety of gold,” analysts observed.
In other currency movements, the U.S. dollar dipped slightly by 0.05% against the euro, trading at $1.0821 per euro, while it remained almost unchanged (+0.01%) against the British pound at $1.2983 per pound.
The greenback continues to maintain the gains it made from the previous day.
“There is increasing skepticism about the Federal Reserve’s (Fed) potential to cut interest rates in its upcoming meeting on November 7,” analysts stated, “as U.S. economic data continues to exceed expectations.”
Further clarity on the American economic landscape is expected Wednesday with the release of the Fed’s economic report, commonly referred to as the “Beige Book,” which surveys businesses and economic stakeholders.
