Gold dips as dollar bounces; focus on U.S. election, Fed

31-Oct (Reuters) — Gold dipped on Monday as the dollar rebounded after recent losses, though concerns over the outlook for the U.S. election and Federal Reserve policy kept the metal pinned near the previous session’s three-week high.

The metal hit its highest since Oct. 4 on Friday after the Federal Bureau of Investigation announced another investigation into Democratic presidential candidate Hillary Clinton’s use of a personal email server while she was secretary of state.

That shook up markets that had priced in a Clinton victory over Republican Donald Trump, prompting losses in stocks and the dollar.

…”People had been presuming the election was a done deal for Clinton,” said Natixis analyst Bernard Dahdah. “If this means her lead is reduced, the gold market could benefit from that uncertainty.”

October U.S. payrolls data on Friday will be of great interest this week, he said, while markets are looking for pointers on policy when the Fed meets on Tuesday and Wednesday.

“We’re not expecting a rate hike in November, but we’ll be looking at the language,” Dahdah said. “That could be a mover.”

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