Morning Snapshot: Gold Attempts to Regain $1300 as Rebound Continues

02-Nov (USAGOLD) — Gold is well bid to begin the U.S. session after posting solid follow-through gains overseas. The yellow metal is once again setting fresh 4-week highs, attempting to regain the $1300 level as investors seek a safe haven amid rising uncertainty as to who will be the next U.S. President.

The Fed concludes their 2-day meeting today and will announce policy at 2:00PM ET. No change is expected this close to U.S. elections, but there is hope that the statement will clarify the Fed’s intentions for later in the year. I think they will express optimism, but leave themselves room to backtrack if markets are roiled by the election or incoming data over the next 6-weeks.

The ADP employment survey came in at +147k, below expectations of +165k. This may temper October nonfarm payroll expectations somewhat. The big jobs report comes out on Friday; and as always will greatly influence rate hike expectations.