Investing.com -- Gold prices steadied just below record highs in Asian trade on Thursday as safe haven demand remained underpinned by anticipation of key economic cues and a tight U.S. presidential race.
The yellow metal hit a series of record highs this week, largely shrugging off a stronger dollar as a broader risk-averse sentiment kept traders largely biased towards havens.
Some concerns over the Middle East conflict also fueled safe haven demand, as did increased political uncertainty in Japan.
Spot gold fell 0.1% to $2,783.76 an ounce, while gold futures expiring in December fell 0.2% to $2,794.80 an ounce by 03:37 ET (07:37 GMT). Spot prices hit a record high of $2,790.10 an ounce earlier in the session.
Gold heads for bumper Oct amid increased haven demand
Spot prices were headed for an over 5% jump in October, a fourth straight month of gains.
Increased uncertainty over the U.S. election was a key driver of gold’s recent gains, as was sustained expectations of lower U.S. interest rates.
Recent polls showed Donald Trump and Kamala Harris almost neck-and-neck in running for the next president, although prediction markets were more geared towards a Trump victory.
In addition to political uncertainty, gold was also buoyed by anticipation of several key U.S. economic readings this week. PCE price index data- the Federal Reserve’s preferred inflation gauge- is due later on Thursday, while nonfarm payrolls data is due on Friday.
The readings come just days 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. Broader metal prices were still pressured by a strong dollar, as signs of resilience in the U.S. economy
boosted the greenback.
Platinum futures fell 0.7% to $1,014.70 an ounce, while silver futures fell 1% to $33.727 an ounce.
Copper weakens, set for steep Oct losses amid China jitters
Among industrial metals, copper prices edged lower on Thursday, taking limited cues from mixed purchasing managers index data from top importer China and the country’s plans for more stimulus.
Concerns over China also saw copper headed for steep losses in October. Benchmark copper futures on the London Metal Exchange fell 0.2% to $9,544.50 a ton, while December copper futures fell 0.3% to $4.3487 a pound. Both contracts were down between 3% and 4% in October.
Chinese PMI data offered little optimism, as manufacturing activity managed to just expand in October. But non-manufacturing activity grew at a slower pace.
A Reuters report showed China planned to roll out $1.4 trillion in more debt over the coming years, aimed largely at shoring up economic growth. Focus is now on a meeting of China’s National People’s Congress next week for more cues on fiscal stimulus.