The gold price is making a run for the $1,300 dollar mark in late trading today ahead of Wednesday’s US Fed meeting and as investors ponder the fact of a Donald trump presidency which if happens is expected to throw the financial markets into turmoil.
At 7.39pm (GMT) gold was trading at $1,289 up from $1,275 in yesterday’s trading.
Gold has reached a 1 month high on the back of stronger polls which show the election may go down to the wire against Hilary Clinton and the precious metal could move a lot higher should Trump pull off the upset of the decade,
"We've seen that Clinton has lost some of the head start she had on Trump," noted Capital Economics analyst Simona Gambarini.
"A very small possibility of Trump winning the election is priced into gold, so if he actually won, we could see quite a big jump." she added.
Another mover and shaker for the gold price this week is Wednesday’s US Federal Reserve interest rate decision where most analysts expect rates to stay on hold, but the following monetary statement may shed some light on whether the Fed plans to lift rates in December.
The market is pricing in a more than 70 percent chance that a rate rise will come next month.
"We still have to see what will happen with the Fed. It's unlikely that much will happen this week, it's reasonable to expect that it will wait until December to hike rates." Mrs Gambarini said.
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