Gold prices hovered near all-time high levels on Tuesday, aided by US election uncertainty and expectations of an interest rate cut by the US Federal Reserve in November, while focus was also on a series of economic data, reports Reuters.
Spot gold was up 0.3 per cent to $2,750.87 per ounce as of 1114 GMT, just shy of a record high of $2,758.37 hit last Wednesday. US gold futures gained 0.3 per cent to $2,763.40.
"Gold bulls appear to be taking advantage of the recent pause in the U.S. dollar's and yields ascent, while still enjoying the tailwinds from Fed rate cut expectations and US election risks," said Han Tan, chief market analyst at Exinity Group.
"Gold should retain its upward bias and may even flirt with $2,800 in the days ahead, as long as US election risks continue weighing on market sentiment while Fed rate cut expectations remain intact."
With the Federal Reserve's rate decision due on Nov. 7, investors will be scrutinizing US job openings at 1400 GMT, ADP employment on Wednesday, US Personal Consumption Expenditures on Thursday, and payrolls report on Friday to gauge their influence on the US central bank's move.
Markets are pricing in about 95 per cent chance of a 25-basis-point rate cut by the Fed in November, according to CME's FedWatch Tool. Bullion thrives in a low interest rate environment and is considered a hedge against political and economic uncertainty.
Competition between Republican Donald Trump and Democrat Kamala Harris remains tight ahead of the Nov. 5 presidential election.
From the technical point of view, the Relative Strength Index currently at 69 suggests that the gold price is approaching the "overbought" territory, starting at 70.
Spot silver was up 1.3 per cent to $34.13 per ounce and platinum rose 1.8 per cent to $1,051.25.
Palladium rose 1.4 per cent to $1,236.00, after hitting a 10-month high on concerns over sanctions on top producer Russia.
