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PRECIOUS-Gold steady as investors eye U.S election outcome

Published 11/05/2020, 09:32 AM
Updated 11/05/2020, 09:40 AM
© Reuters.
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Nov 5 (Reuters) - Gold prices were little changed on
Thursday after early U.S. election results suggested a lead for
Democrat contender Joe Biden, even as the possibility of a
contested result remained.

FUNDAMENTALS
* Spot gold XAU= was little changed at $1,904.66 per ounce
by 0111 GMT.
* U.S. gold futures GCv1 rose 0.5% to $1,905.50 per ounce.
* Biden said on Wednesday he was headed toward a victory
over President Donald Trump in the U.S. election after claiming
the pivotal Midwestern states of Wisconsin and Michigan.
* But Trump moved to file lawsuits and request for a recount
in votes in several battleground states, amounting to a broad
effort to contest the results of the election.
* Investors increasingly expect the Republican and
Democratic parties to retain their respective control of the
Senate and the House of Representatives, dimming the prospect of
higher taxes and financial regulation even under a Biden win.
MKTS/GLOB
* The dollar index .DXY was flat against a basket of
currencies, having risen as much as 0.8% in the previous
session. USD/ * U.S. private payrolls increased less than expected in
October and activity in the services industry cooled, providing
early signs of a slowdown in economic growth. * The Bank of England is said to be considering a move into
negative interest rates, the Telegraph newspaper reported late
on Wednesday, without citing any sources, ahead of the central
bank's November monetary policy decision on Thursday.
* The U.S. Federal Reserve's policy decision, due at 1900
GMT on Thursday, is also on investors' minds, with the central
bank expected to reaffirm its stance of low interest rate.

* Silver XAG= rose 0.3% to $23.98. Platinum XPT= was
steady at $869.04, while palladium XPD= fell 0.5% to
$2,276.97.

DATA/EVENTS (GMT)

1330 US Initial Jobless Clm Weekly
1900 US Federal Open Market Committee decision on
interest rates


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