Gold has posted slight losses in the Tuesday session. In North American trade, the spot price for one ounce of gold is $1227.67, down 0.34% on the day. On the release front, JOLTS Jobs Openings slipped to 7.01 million, well short of the estimate of 6.14 million. On Tuesday, U.S voters go to the polls in congressional elections, with control of the Senate and the House too close to call.
It is election day in the United States, and voter turnout appears to be heavy. Many analysts are calling the election a referendum on the presidency of Donald Trump, who has presided over a red-hot economy but has also alienated many voters with his controversial policies on health care and immigration. There are a host of races that are too close to call, but most analysts expect the Democrats to narrowly win the House while the Republicans will hold onto their majority in the Senate. If this scenario materializes, the result would be ‘political gridlock’, which could hamper Trump’s fiscal policy plans, which in turn could result in the Federal Reserve easing on its rate hike plans. Traders should expect some volatility in the currency markets once the results are announced.
Another key event this week which could affect gold prices is the Federal Reserve policy meeting on Thursday. The Fed is expected to maintain interest rate levels, with a 93% likelihood that the Fed will stay on the sidelines. However, the rate statement will be scrutinized, with investors looking for clues regarding future monetary policy, as well as the Fed’s view of the economy. If the Fed sounds optimistic about the economy, gold prices could come under pressure.
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