Gold Prices Remain Close to Record Levels Despite Pressure from Profit-Taking Sales

Forex - Gold continues to trade near record levels ahead of the U.S. elections, boosted by increased safe-haven demand and data that could influence the Federal Reserve's interest rate decision next week. Earlier today, gold surpassed the $2,790.10 per ounce mark but is currently trading at $2,783.94, down 0.13% from yesterday.

The price of gold has been influenced by higher-than-expected U.S. employment figures and strong GDP data, which has reduced investors' bets on the extent of rate cuts by the U.S. central bank. Early indications suggest a move toward more monetary easing in next week's meeting. Low borrowing costs are benefiting the precious metal, which does not bear interest. Gold has surged more than a third this year, supported by central bank purchases and safe-haven demand due to conflicts in the Middle East and Ukraine.

The tight U.S. presidential race between Kamala Harris and Donald Trump creates a level of uncertainty that underscores gold's role as a safe haven for investors. Nevertheless, according to Ole Hansen, head of commodity strategy at Saxo Bank A/S, the November 5 elections are seen as a significant risk event for the precious metal, which could lead to a correction of more than $100 per ounce for gold.