Which US presidential candidate does gold prefer?
Gold loves chaos and should be hitting new highs, especially with inflation coming down and with it, two rate cuts likely before year’s end.
Gold wavered after a four-day advance as strong demand for Treasuries signaled investors are confident the Federal Reserve will loosen monetary policy next year.
Such bets see the world’s debt market on track to post its biggest two-month gain on record. Falling yields also drove the dollar lower, boosting the appeal of commodities priced in the currency.
Swaps markets are pricing in about an 85% chance of an interest rate cut by March. Lower yields and rates are usually bullish for non-interest bearing assets like gold. The precious metal has risen nearly 14% this year, on track for its first annual increase in three years.
Gold slipped 0.1% to $2,074.62 an ounce as of 12 p.m. in New York.
(By Yvonne Yue Li)
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