Gold Prices Steady Below Record Highs

Gold prices steadied just below record highs in Asian trade on Thursday due to safe haven demand amid key economic cues and a tight U.S. presidential race.

The yellow metal hit a series of record highs this week, shrugging off a stronger dollar as traders remained biased towards havens due to a broader risk-averse sentiment.

Concerns over the Middle East conflict and increased political uncertainty in Japan also fueled safe haven demand.

Spot gold fell 0.1% to $2,783.76 an ounce, while December gold futures fell 0.2% to $2,794.80 an ounce by 03:37 ET (07:37 GMT). Spot prices had earlier hit a record high of $2,790.10 an ounce.

Gold Heads for Bumper October Amid Increased Haven Demand

Spot prices are on track for over a 5% jump in October, marking the fourth consecutive month of gains.

Uncertainty about the U.S. election significantly contributed to gold’s recent increases, alongside expectations of lower U.S. interest rates. Recent polls revealed a close race between Donald Trump and Kamala Harris, although prediction markets leaned towards a Trump victory.

Gold’s uptrend was also fueled by anticipation of key U.S. economic readings this week, including the PCE price index data, the Federal Reserve’s preferred inflation gauge. This data is due later Thursday, while nonfarm payroll data is expected on Friday.

These readings come just before a Fed meeting, where the central bank is likely to cut interest rates by 25 basis points.

Other precious metals retreated from recent gains on Thursday, with broader metal prices pressured by a strong dollar, bolstered by signs of resilience in the U.S. economy.

Platinum futures decreased by 0.7% to $1,014.70 an ounce, while silver futures dropped 1% to $33.727 an ounce.

Copper Weakens, Set for Steep October Losses Amid China Jitters

Among industrial metals, copper prices edged lower on Thursday, influenced by mixed purchasing managers index data from top importer China and the country’s proposals for more stimulus.

Concerns regarding China have resulted in copper being on track for steep October losses, with benchmark copper futures on the London Metal Exchange falling 0.2% to $9,544.50 a ton, and December copper futures declining 0.3% to $4.3487 a pound. Both contracts are down 3% to 4% in October.

Chinese PMI data provided little optimism, as manufacturing activity just expanded in October, while non-manufacturing activity grew at a slower pace.

A Reuters report indicated that China plans to roll out $1.4 trillion in additional debt over the coming years to support economic growth, with attention now on the upcoming National People’s Congress meeting next week for further fiscal stimulus cues.